Final answer:
A real estate management company buys an apartment complex for $4.8 million with values of land, building, and equipment appraised individually. The total value is $4.8 million. The 5% commission for the broker amounts to $0.24 million.
Step-by-step explanation:
In this scenario, a real estate management company buys an apartment complex for $4.8 million. The appraiser values the land at $1.1 million, the building at $3.4 million, and the equipment at $0.3 million. Therefore, the total value of the apartment complex is $4.8 million ($1.1 million + $3.4 million + $0.3 million).
Since the land, building, and equipment have been appraised individually, it is not accurate to say that any component is undervalued or overvalued. The values have been determined by the appraiser based on various factors such as location, condition, and market demand.
The question mentions that the company pays a 5% commission to a broker for arranging the sale. To calculate the commission, we can multiply the total purchase price ($4.8 million) by 5% (0.05). The commission comes out to $240,000 (or $0.24 million).
Therefore, the correct answer is d. The commission is $0.24 million.