You have no items in your shopping cart.

Consolidated-Tomoka?A Real Estate Holding Company
Simko, Paul J. Case C-2315 / Published August 17, 2010 / 22 pages.
Format Price Quantity Select
PDF Download
$6.75
Printed Black & White Copy
$7.00

Product Overview

A real estate holding company with a diverse array of real estate operations serves to introduce a number of accounting and finance topics. The company owns over 11,000 acres of raw land purchased many years past, thus the use of historical cost accounting has left significant asset value off the books. The company is debt free, but a shift in corporate strategy and the use of tax-free 1231 like-kind exchanges has created an ever growing deferred tax liability. The basics of valuation, particularly income capitalization and a sum-of-the parts methodology are relevant. Finally, pressure from an outsider shareholder has put the company's corporate strategy in flux. Management must assess its current strategy of liquidating raw land and reinvesting in income properties, or devise a new longer-term land-development strategy.


Learning Objectives

Understand the basics of financial statements. Introduce the concept of deferred taxes and tax deferral. Summarize valuation techniques. Analyze a real estate holding company. Assess a changing corporate strategy and investor pressure on management.

  • Videos List

  • Overview

    A real estate holding company with a diverse array of real estate operations serves to introduce a number of accounting and finance topics. The company owns over 11,000 acres of raw land purchased many years past, thus the use of historical cost accounting has left significant asset value off the books. The company is debt free, but a shift in corporate strategy and the use of tax-free 1231 like-kind exchanges has created an ever growing deferred tax liability. The basics of valuation, particularly income capitalization and a sum-of-the parts methodology are relevant. Finally, pressure from an outsider shareholder has put the company's corporate strategy in flux. Management must assess its current strategy of liquidating raw land and reinvesting in income properties, or devise a new longer-term land-development strategy.

  • Learning Objectives

    Learning Objectives

    Understand the basics of financial statements. Introduce the concept of deferred taxes and tax deferral. Summarize valuation techniques. Analyze a real estate holding company. Assess a changing corporate strategy and investor pressure on management.