13. Consider the following statement: In an efficient/competiti into property values. (1) will NOT be capitalized (2) The statement is true because tax-loss sheltering car the level without sheltering. se the level of returns above (3) The statement is true because acquisition prices would rise by an amount equal to the present value of the tax shelter. (4) shelters. The statement is false because major market participants are sufficiently informed of tax The statement is false because, in an efficient/competitive market, tax shelters will be capitalized into property values 14 Which of the following statements regarding residential and commercial tenancies is/are TRUE? (1) In a fixed-term commercial lease, a minimum of one months' notice is required to terminate the lease. (2) (3 ) In a residential lease, landlords can seize tenant's belongings and sell to cover rent in arrears. In a commercial lease, the landlord has no obligation to mitigate damages, unless the landlord decides to terminate the lease. (4) All of the above 15 What services do landlords typically provide to the tenants in an office lease? Interior maintenance and cleaning ( 2 ) Structural repairs to the leased premises (3) Real estate taxes (4) Telephone answering service 16 The mortgage-equity approach may be used to do which of the following? Test separately determined value estimates Analyze the capitalization rates derived through other techniques AWNI Graphically analyze financial components of an overall rate All of the above THE NEXT TWO (2) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Gross Potential Rental Income: $375,000 per year Total Variable Expenses: $50,000 per year Total Fixed Expenses: $60,000 per year Total Reserves: $15,000 per year Building Size: 25,000 sq. ft. 17. What is the operating leverage at 80% occupancy, excluding reserves? (1) 1.15 (2) 1.22 (3) 1.30 1.48 What is the break-even point in square feet (rounded to the nearest square foot), excluding reserves? 18. 4,615 5,128 3,624 2,125