Homework SourseDick owns a house that he rents to college students Dickrece
Dick owns a house that he rents to college students. Dickreceives $750 per month rent and incurs the following expensesduring the year. Real estate taxes $1,250 Mortgage, interest$1,500, Insurance $375, Repairs $562. Dick purchased the house in1980 for $48,000, excluding land costs, and depreciates it on astraight-line basis with no salvage value and a useful life of 30years. Calculate dick’s net rental income for the year,assuming the house was rented for a full 12 months.
Rental Income $
Rental Income $
Expenses
Net rental income $
Dick owns a house that he rents to college students. Dickreceives $750 per month rent and incurs the following expensesduring the year. Real estate taxes $1,250 Mortgage, interest$1,500, Insurance $375, Repairs $562. Dick purchased the house in1980 for $48,000, excluding land costs, and depreciates it on astraight-line basis with no salvage value and a useful life of 30years. Calculate dick’s net rental income for the year,assuming the house was rented for a full 12 months.
Rental Income $
Rental Income $
Expenses
Net rental income $
Solution
Yearly RentalIncome $750x12 $9,000
Yearly Expenses
============
Real estate\'staxes $1,250
MortgageInterest $1,500
Insurance $375
Repairs $562
Buildingdepreciation $1,600
_________
TotalExpenses $5,287
======== $5,287
________
NetRentalIncome $3,713
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