What is effective gross income

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An office building is valued at $1,000,000 when net income is capitalized at a rate of 12 percent. If total operating expenses are 40 percent of effective gross income, what is effective gross income?

$133,333

$200,000

$300,000

$1,000,000

2. The cost of constructing a building today with the same functional utility as a structure being appraised but with modern materials and techniques is known as the:

Replacement cost.

Unit in place cost.

Reproduction cost.

Market cost.

Reference no: EM131298141

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