Question

42. Apartment building manager reports revenue of $1,350 per month. He was 100% occupied for the year. He pays $70 per month for water & trash for the complex. His insurance was $1,050 for the year. His payment on the building were $8,400 for the year. $4,815 of it was interest. He was $50 in advertising expense for the year. Maintenance totaled for year totaled $925. He will be depreciating the property $2,320 for the year. He is also depreciating a Heat & Air unit at $815 for the year, which he bought and installed this year for the cost of $5,000. He has $5,300 in his business bank account and is holding deposits of $1,300 in escrow. The land is valued at $20,000. The building is valued at 116,000 with the land. Total depreciation on the building has been $25,000. He owns the local printer $65; the plumber, $420 and the local paper $50. He owes $73,500 on the property. Property taxes for the year are $1,725. The owner paid income tax of $12,500 this year.

Annual Gross possible rental income is:

(A) $1,350.00 (B)$1,200.00 (C) $16,200.00 (D)$14,400.00

Answer 1

Annual Gross possible rental income is: $16,200

Per Month Rent Income is $1350. Hence

Annual Gross Possible Rent Income will be $1,350 x 12 = $16,200

Other options can not be consider as correct.

A. $1,350 - This is monthly Gross rental income

B. $1,200 - Gross income doesn't have any deduction hence this can not be the correct answer.

C. $16,200 - Correct Answer

D. $ 14,400 - Gross income doesn't have any deduction hence this can not be the correct answer.