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Theory
Contracts
Make ready / TI
CAPTI Adjustment
FAS
100

What is the difference between capital or operating costs? (Generally speaking)

  • Operating costs are lower in general, for routine and recurring expenses for normal business operations.
  • Capital costs are higher in general, consist of work that is not frequent in nature, has a useful life > 1 year, and adds value to a property.
100

At what dollar amount requires a contract?

  • $10,000
100

You receive a lease with a TIA, what vendor do you use for the contract?

DUMMY

100

The tenant at 355 renewed as is but had a 9k MR budgeted. What is the CAPTI adjustment and at which job code?

  • - 9k on 355 MISC
100

What is the regular cost column for on the FAS upload?

Tracking the tax books

200

What releases do we need to release the second progress billing?

  • Conditional progress for the new invoice (1)
  • Unconditional progress for the prior (2)
200

We have a $20,000 OPEX paint job, do we need a contract?

No

200

What is the difference between a make ready & TI?

  • TI are terms agreed to within the lease.
  • Make ready’s are in order to prep the space for leasing
200

On the CAPTI, Connie has an unbudgeted Roof committed contract for $300,000 & she tells you a $15,000 repair is coming. What is the Adjustment needed?

  • $15,000
200

At what dollar amount do we break out ST or LT for FAS?

50k

300

What are the requirements to capitalize a roof in both regular (tax) and internal books?

Full roof replacement that is greater than a third

300

At what dollar amount do we need a lien release for a single vendor invoice?

  • $25,000
300

Is the following coding correct: 654-216, PH 2023M, 6405-000 - True/False

False

300

600 has a 10k LNDSC budget on the Feb CAPTI. You receive a 20k contract March 2nd. What adjustment is needed on that month’s CAPTI?

  • +10k
300

A Job is expensed on both tax & internal books, what do you enter in FAS

Nothing

400

What criteria does a building improvement need to be capitalized?

The improvement will result in higher revenues.

400

What is a joint check and What is the contract threshold for joint checks?

  • A Joint Check is one that is payable to two parties.  Joint checks are used by owners to ensure general contractors will pay their subcontractors and material suppliers.
  • In our case, we cut Joint Checks to a GC and a subcontractor
  • $250K
400

An ongoing TIA for suite 337A at building 349 started in 2022. We received an invoice 4/1/2023, what is the correct coding?

  • 349-337A, PH 2022, 6400-100
400

Accruals were uploaded on accrual day. Prelim CAPTI has been prepared. You received an 100k invoice that was included in your accrual upload. What is the CAPTI adjustment?

No adjustment

400

We capitalized a TPO for 150k, how much should we enter into the tax books?

  • $0.00
500

What fixed asset is not depreciated?

  • land
500

What type of contract needs to be committed for a Gjob?

No contract needs to be committed – we do need a signed AR

500
  • The lease term is 5 years effective 1/1/23. The TI was completed 6/30/23. What is the asset term in years?
  • 4 ½ years
500

You manually accrued 100k Roof to close it in December. On accrual day, it is included in your upload. The prelim CAPTI shows 200k under roof. What do you need to do?

  • -100k adjustment on the CAPTI
  • Reverse your accrual.
500

A Make Ready related to a lease starting 5/1/23 and expiring 5/31/34. How would you type in the internal life?

0500