An Office Complex Consists of 300 Units Which Rent at $760

question 81

Short Answer

An office complex consists of 300 units which rent at $760 per month with no vacancies.Each $20 per month increase will create four vacancies with no possibility of filling them.The owner wishes to receive $233,600 per month from the complex.How much should the rent be increased to meet this goal?

---

Definitions:

Stockholders' Equity

The remaining interest in a company's assets after all liabilities have been subtracted, also referred to as shareholders' equity.

Unearned Revenue Account

A liability account that records payments received for goods or services not yet delivered or performed.

Record Deferral

The process of postponing the recognition of certain income or expenses in the financial records until a later accounting period.

Journal Entries

Records in accounting that document every financial transaction affecting the accounts of a business, used to track and manage financial activities.