PROBLEM Keep or Sell Property L
Ben Ryatt, professor of languages at a southern university, owns a small office building adjacent to the university campus. He acquired the property years ago at a total cost of $$ for the land and $ for the building. He has just received an offer from a realty company that wants to purchase the property; however, the property has been a good source of income over the years, so Professor Ryatt is unsure whether he should keep it or sell it His alternatives are:
Keep the property. Professor Ryatt's accountant has kept careful records of the income realized from the property over the past years. These records indicate the following annual revenues and expenses:
table$tableRental receipts Less building expenses:Utilities $Depreciation of building,Property taxes and insurance,Repairs and maintenance,Custodial help and supplies,Net operating income.,,$
