Given the following information, calculate the effective gross income. Property: 4 office units, Contract rents per unit: $2500 per month, Vacancy and collection losses: 15%, Operating Expenses: $42,000, Capital Expenditures: 10%A. $48,000

B. $60,000

C. $95,000

D. $102,000

D. $102,000

Explanation:

The computation of the effective gross income is shown below:-

Effective gross income = Gross income - Vacancy expense

= ($2500 per month cost * 12 months * 4 office units) - ($2500 per month cost * 12 months * 4 office units * 15% collective losses)

= ($2,500 * 12 * 4) - (($2,500 * 12 * 4 * 15%)

= $120,000 - $18,000

= $102,000