Mort is the owner of an apartment building containing ten identical apartments. Mort resides in one apartment and rents out the remaining units. For 2021, the following information is available: Gross rents $110,600 Utilities for total building 25,000 Maintenance and repairs (rental apartments only) 10,500 Advertising for vacant apartments 3,000 Depreciation of building (all ten units) 40,000 What amount should Mort report as net rental income for 2021? a.$35,000 b.$38,600 c.$39,950 d.$32,100 e.None of these choices are correct.
Mort is the owner of an apartment building containing ten identical apartments. Mort resides in one apartment and rents out the remaining units. For 2021, the following information is available: Gross rents $110,600 Utilities for total building 25,000 Maintenance and repairs (rental apartments only) 10,500 Advertising for vacant apartments 3,000 Depreciation of building (all ten units) 40,000 What amount should Mort report as net rental income for 2021? a.$35,000 b.$38,600 c.$39,950 d.$32,100 e.None of these choices are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mort is the owner of an apartment building containing ten identical apartments. Mort resides in one apartment and rents out the remaining units. For 2021, the following information is available:
What amount should Mort report as net rental income for 2021?
| Gross rents | $110,600 |
| Utilities for total building | 25,000 |
| Maintenance and repairs (rental apartments only) | 10,500 |
| Advertising for vacant apartments | 3,000 |
| 40,000 |
What amount should Mort report as net rental income for 2021?
a.$35,000
b.$38,600
c.$39,950
d.$32,100
e.None of these choices are correct.
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