If the Effective Gross Income is $44,232 and the Operating Expenses are $22,400, what is the Net Income?

To determine the Net Income, you subtract the Operating Expenses from the Effective Gross Income. In this case, the Effective Gross Income is $44,232, and the Operating Expenses are $22,400.

By performing the calculation:

Net Income = Effective Gross Income - Operating Expenses

Net Income = $44,232 - $22,400

Net Income = $21,832

This calculation shows that the Net Income is indeed $21,832, confirming that the first choice is the correct answer. Understanding this basic concept of income calculation is essential for property appraisers and assessors, as it provides insight into the profitability of an income-generating property.