A 1,500 Square Foot Office Space Is Leased at $12

question 17

Multiple Choice

A 1,500 square foot office space is leased at $12.00 square foot.The space is vacant one month out of the year.Office expenses are $6.50 per square foot and an expense stop is set at $6.00 per square foot.What is the annual net operating income?

• A)$7,500
• B)$6,750
• C)$15,750
• D)$8,250

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Definitions:

Bonus

Compensation to management and other personnel, based on factors such as increased sales or the amount of net income.

Total Net Assets

Total net assets represent the total value of an organization's assets minus its total liabilities, indicating the net worth of an organization.

Total Capital

The sum of a company's equity, debt, and any other long-term financing.

Admission by Investment

The process of becoming a partner or member in a company or partnership through a financial investment.