Question

Divided by
10% X $500,000
=10% X $500,000 = $50,000 (net income)
$50,000 + $20,000 = $70,000 (gross income)

To obtain a 12% cap rate:
I . divided by
12% X $500,000
= 12% X $500,000 = $60,000 (net income)
$60,000 + $20,000 = $80,000 (new gross income)

a) $70,000
b) $50,000
c) $80,000
d) $60,000"