Multiple Choice
On January 1, 2011, Collins Company leased a warehouse to Cuthbert under an operating lease for ten years at $80,000 per year, payable the first day of each lease year. Collins paid $36,000 to a real estate broker as a finder's fee. The warehouse is depreciated at $20,000 per year. During 2011, Collins incurred insurance and property tax expense totaling $15,000. Collins' net rental income for 2011 should be
A) $9,000.
B) $41,400.
C) $44,000.
D) $45,000.
Correct Answer:
Verified
Correct Answer:
Verified
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