A. Given the following owner s income and expense estimates for an apartment property, formulate a reconstructed operating statement. The building consists of 10 units that could rent for $550 per month each.

Owner s Income Statement
Rental income (last year) $60,600
Less: Expenses
Power $2,200
Heat 1,700
Janitor 4,600
Water 3,700
Maintenance 4,800
Reserves 2,800
Management 3,000
Depreciation 5,000
Mortgage payments 6,300 34,100
Net income $26,500

Estimating vacancy and collection losses at 5 percent of potential gross income, reconstruct the operating statement to obtain an estimate of NOI. Remember, there may be items in the owner s statement that should not be included in the reconstructed operating statement.

B.)Using the NOI obtained above and an Ro of 11.0 percent, calculate the property s Indicated value. Round your final answer to the nearest $500.