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Given the following information, calculate the funds from operation (FFO).

Net income: $1,200,000
Gain/losses from infrequent and unusual events: $0
Amortization of tenant improvements: $120,000
Amortization of leasing expenses: $75,000
Depreciation (real property): $2,675,000.

a. $195,000
b. $1,395,000
c. $2,870,000
d. $4,070,000

Sagot :

Answer:

Funds from Operations = 4070000

Explanation:

Use the below formula to find the fund from operations:

Funds from Operations = Net Income + Depreciation + Amortization - Gains on Sales of Property

Funds from Operations = 1200000 + 2675000 + 75000  + 120000

Funds from Operations = 4070000

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