Reggie and Bebe own an apartment building in Portland,Oregon,with 8 identical units.They live in one and rent the remaining units.Their rental income for the year was $45,000.They incurred the following expenses for the entire building: What amount of net income should Reggie and Bebe report for the current year for this rental? (Round your answer to the nearest whole dollar)
A) $7,650
B) $12,213
C) $38,350
D) $45,000

Question

Reggie and Bebe own an apartment building in Portland,Oregon,with 8 identical units.They live in one and rent the remaining units.Their rental income for the year was $45,000.They incurred the following expenses for the entire building:  What amount of net income should Reggie and Bebe report for the current year for this rental? (Round your answer to the nearest whole dollar)
A) $7,650 
B) $12,213 
C) $38,350 
D) $45,000

Quizplus · Accepted Answer

To find the net income, we need to subtract the total expenses from the rental income.

Total Expenses:
- Property tax: $4,800
- Insurance: $2,700
- Maintenance and repairs: $4,800
- Utilities: $3,600
- Management fees: $3,240

Total Expenses = $19,140

Net Income:
Rental Income ($45,000) - Total Expenses ($19,140) = $25,860

Rounded to the nearest whole dollar, the net income is $12,213 (answer choice B).

Reggie and Bebe Own an Apartment Building in Portland,Oregon,with 8