Hi all,Thinking that I may have spotted an error: the numbers just don't make sense to me. Could someone please validate/disagree on that?In the first practice reading of Reading 38, the Potential Gross Income of the first property is $5,130,000. The vacancy loss is $513,000. And the effective gross income is $5,079,000.Should be: Potential gross income - vacancy loss = effective gross income !!!Thanks

@agent1 wow, you reached reading 38 already?back to your question: what you are saying is right...looks like a calculation mistake there...if you see the calculation for the other two Properties, your formula seems right...

A CFA Level 2 Discussion About Volume 5. Alternative Investments. Reading 38. First Practice Problem. Error?

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This topic has 1 reply, 2 voices, and was last updated Jan-189:24 am by Pranav.

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- agent1
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  14 Jan 2018 at 12:04 am
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  Hi all,
  
  Thinking that I may have spotted an error: the numbers just don’t make sense to me. Could someone please validate/disagree on that?
  
  In the first practice reading of Reading 38, the Potential Gross Income of the first property is $5,130,000. The vacancy loss is $513,000. And the effective gross income is $5,079,000.
  
  Should be: Potential gross income – vacancy loss = effective gross income !!!
  
  Thanks
- Pranav
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  14 Jan 2018 at 9:24 am
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  @agent1‌
  wow, you reached reading 38 already?
  
  back to your question: what you are saying is right…looks like a calculation mistake there…if you see the calculation for the other two Properties, your formula seems right…
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