1. Craine Crossroads has 100 two-bedroom apartments that ing the vacancy rate for two-bedroom units in the market area. Addi- for $900 per month. The complex currently has five vacant units, match tional other income from recreation room fees and parking is $40,000 the market area, causing the vacancy rates for the existing complexes per year. Next year, two new apartment complexes will be completed in will rise only 2%. Management fees are 5% of effective gross income. rise to 7.5%. Other income will remain flat and rent at Craine Crossroads $130,000. Maintenance, repairs, and replacements are 8% of EGI. The Property taxes are scheduled to go up to $140,000 from the current currently Ten 10 other operating expenses arewexpected to cost 3% more next year. Those current expenses are as follows: Salaries $95,200 Utilities $50,800 Insurance $19,100 Supplies $9,900 Advertising, legal, misc. $14,700 Reconstruct this year's and next year's operating statements for Craine Crossroads. 2. Calculate the next year's operating statement for Craine Crossroads if the vacancy rate drops to 4% next year because of the transfer of troops to the army post nearby. All other projected figures will remain the same