What follows is a series of questions related to the discussion we had in class concerning a REITs financial statements. For reference, please refer to the Excel file 2nd Quarter REIT Financial Statments, Tab FFO. Let's make the following assumptions about a simplified REIT income statement. (All of the numbers are in millions). 250 in revenues; 160 in operating expenses; 58 in depreciation; 100 shares outstanding; 9 in Leasing Commissions and Cap Expenditures; 40% tax rate.

What is the REITs taxable income on a GAAP basis?

23
32
70
46