Circle T or F to indicate True or False as the better answer.

-Small income properties are bought and sold only for their tangible amenities.

- A savings account earning 5% per annum that has just paid a $500 annual dividend is worth about $25,000.

-If you subtract vacancy and credit loss from gross scheduled income, you arrive at the effective gross income.

- In income property appraisal, the gross income multiplier is often considered part of the sales comparison approach.

- Gross income multipliers normally increase with a decrease in the operating expense ratio.

-Market rent can be defined as the potential gross rent in an open market.

- A step-up lease is a lease on a walk-up apartment.

-Operating expenses should include all owner-related expenses.

-Expenses that are not classified as either variable or fixed should be omitted.

-Rent for the managers unit should be included in the rent forecast.