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Sliva [168]
3 years ago
5

A strip mall generates $215,000 in effective rental income and $3,000 in other income. The same mall has $102,000 in operating e

xpenses and $15,000 as reserves. What is the net operating income ofthe strip mall?
A. $113,000
B. $99,000
C. $101,000
D. $116,000
Mathematics
1 answer:
Gnesinka [82]3 years ago
6 0

Answer: $116,000

Step-by-step explanation:

The net operating income will be the operation profit after deducting the expenses from the accrued revenue (reserve exclusive)

The revenue generated are $215,000 + $3,000

= $218,000

Expenses incurred;

$102,000

The net operating income = $218,000 - $102,000

= $116,000

Note that reserves is not used in business operation. Therefore it cannot be regarded either as revenue or expenses.

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