A retail tenant pays base rent of $1,800 per month plus 4% of gross monthly sales over a breakpoint of $40,000. If the tenant's gross sales for the month are $50,000, what total rent is due for that month?
Correct Answer
B) $2,200
Sales over the breakpoint = $50,000 − $40,000 = $10,000. Percentage rent = $10,000 × 4% = $400. Total rent = $1,800 + $400 = $2,200.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
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Which of the following is NOT a leasehold estate classified by how long the tenant's possession lasts?
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