An office building is valued at $1,000,000 when net income is capitalized at a rate of 12 percent. If total operating expenses are 40 percent of effective gross income, what is effective gross income?
$133,333
$200,000
$300,000
$1,000,000
2. The cost of constructing a building today with the same functional utility as a structure being appraised but with modern materials and techniques is known as the:
Replacement cost.
Unit in place cost.
Reproduction cost.
Market cost.