Salvage value and a useful life


Dick owns a house that he rents to college students. Dickreceives $750 per month rent and incurs the following expensesduring the year. Real estate taxes $1,250 Mortgage, interest$1,500, Insurance $375, Repairs $562. Dick purchased the house in1980 for $48,000, excluding land costs, and depreciates it on astraight-line basis with no salvage value and a useful life of 30years. Calculate dick's net rental income for the year,assuming the house was rented for a full 12 months.

  • Rental Income $
  • Expenses
  • Net rental income $

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Accounting Basics: Salvage value and a useful life
Reference No:- TGS0718978

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