Property Valuation
An Oklahoma commercial property appraiser calculates the effective gross income (EGI) by:
AAdding all expenses to gross potential income
BSubtracting vacancy and credit loss from the gross potential income (GPI) to arrive at the expected actual income collected✓ Correct
CMultiplying GPI by the capitalization rate
DApplying the assessment ratio to GPI
Explanation
EGI = Gross Potential Income − Vacancy and Credit Loss. GPI assumes 100% occupancy at market rates. EGI represents more realistic expected income after accounting for vacancy and uncollectible rents.
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