Question

Given the following information, calculate the total amount of annual operating expenses for this income-producing property. Lawn care: $10,000, Property taxes: $24,000, Maintenance: $35,000, Janitorial: $25,000, Security: $32,000, Debt service: $145,000.
A. $102,000

B. $126,000 Expenses, but not debt service

C. $247,000

D. $271,000

Answer 1

Answer:

B. $126,000 Expenses, but not debt service

Explanation:

The computation of the total amount of the operating expenses is shown below:

= Lawn care + property taxes + maintenance + Janitorial + Security Patrol

= $10,000 + $24,000 + $35,000 + $25,000 + $32,000

= $126,000

Basically we added the items that are to be included in the total amount of annual operating expenses