The owner of a small local flea market rents tables to vendors every Sunday. His only expense is the purchase of the building in which the flea market operates at a cost of $450,000. The owner expects to rent about 20 tables per week (1000 per year), and wishes to receive a 12% annual return on his investment in the building. What gross margin (in dollars) should the owner use?
The owner of a small local flea market rents tables to vendors every Sunday. His only expense is the purchase of the building in which the flea market operates at a cost of $450,000. The owner expects to rent about 20 tables per week (1000 per year), and wishes to receive a 12% annual return on his investment in the building. What gross margin (in dollars) should the owner use?
Chapter9: Deductions: Employee And Self-employed-related Expenses
Section: Chapter Questions
Problem 15CE
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![The owner of a small local flea market
rents tables to vendors every Sunday.
His only expense is the purchase of
the building in which the flea market
operates at a cost of $450,000. The
owner expects to rent about 20 tables
per week (1000 per year), and wishes
to receive a 12% annual return on his
investment in the building. What gross
margin (in dollars) should the owner
use?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f7694a6-6070-4401-9e7c-8643b4a39565%2Fe7478c46-edd7-4ca1-8c7a-58a6128e6edd%2F9di8ilk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The owner of a small local flea market
rents tables to vendors every Sunday.
His only expense is the purchase of
the building in which the flea market
operates at a cost of $450,000. The
owner expects to rent about 20 tables
per week (1000 per year), and wishes
to receive a 12% annual return on his
investment in the building. What gross
margin (in dollars) should the owner
use?
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