Reference no: EM13661659

You own a house that you rent for $1,200 a month. The maintenance expenses on the house average $200 a month. The house cost $89,000 when you purchased it several years ago. A recent appraisal on the house valued it at $210,000. The annual property taxes are $5,000. If you sell the house you will incur $20,000 in expenses. You are deciding whether to sell the house, or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?

a) $89,000
b) $120,000
c) $185,000
d) $190,000
e) $210,000