17. Which of the following is not tax deductible for income generating properties?

Select one:

A. Depreciation

B. Mortgage principle payment

C. Maintenance expense

D. Property tax

16. The value of your house (your primary residence) is $305,000. The lot value is $65,000. The depreciation recapture rate is 25%. How much can you deduct in depreciation per year from your taxable income?

Select one:

A. $0

B. $58,250

C. $60,000

D. $76,250

15. Which of the following is not true about operating leverage?

Select one:

A. A small increase in occupancy rate leads to a large increase in NOI.

B. Increase in occupancy leads to bigger increase in revenue than in expense.

C. Operating leverage happens because fixed expense does not change with occupancy.

D. Increase in occupancy leads to the same increase in revenue and in expense.

14. An office building has rent of $650/ unit. The variable expense is $150/unit. Fixed expense is $2500 and Debt service is $3500. What is the break-even number of units for the building?

Select one:

A. 15

B. 11

C. 12

D. 10