1. Dick owns a house that he rents to college students. Dick receives $750 per month rent...

Question:

1. Dick owns a house that he rents to college students. Dick receives $750 per month rent and incurs the following expenses during the year:

Real estate taxes $ 1,250 Mortgage interest 1,500 Insurance 375 Repairs 562 Association Dues 1,600 Dick purchased the house in 1975 for $48,000. The house is fully depreciated. Calculate Dick’s net rental income for the year, assuming the house was rented for a full 12 months.

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