1.Investor thompson is seriously considering the acquisition of a rental property with a potential gross income of $43,200.00 per annum. The allowance for vacany and bad debts is 4.5% of potential gross income and annual operating expenses are estimated to be $19,750. The value of the building based on a capatilization rate of 12% is?
a.$195,417
b.$179,217
c.$157,500
d.$164,583
2.If the net operating income before depreciation of a building is $31,200 anually, and the overall capitalization rate for rate this type of property is 12.5%, the value of the property using the capitalization formula is?
a.$312,050
b.$265,700
c.$249,600
d.$390,000
c.The Provincial Land Transfer Tax for a commercial property sellling for $387,000 is:
a.$4,280
b.$3,595
c.$5,805
d.$4,965