Question

A REIT with 100 shares outstanding earns $1,000 in rent and incurs operating expenses of $400. In addition, the REIT owns property with an historic cost of $6,000 and depreciates it over a 15 year period using straight-line depreciation. At the very least, what dividend payment must it make to maintain its tax exempt status?

A) $1.80/share

B) $2.00/share

C) $3.60/share

D) $5.40/share

Answer

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