Given the following owner’s income and expense estimates for an apartment property, formulate a reconstructed operating statement. The building consists of 10 units that could rent for $550 per month each. Owner’s Income Statement Rental income (last year) $60,600 Less: Expenses Power $2,200 Heat 1,700 Janitor 4,600 Water 3,700 Maintenance 4,800 Reserves for replacement 2,800 Management 3,000 Depreciation 5,000 Mortgage payments 6,300 34,100 Net income $26,500 Estimating vacancy and collection losses at 5 percent of potential gross income, reconstruct the operating statement to obtain an estimate of NOI. Remember, there may be items in the owner’s statement that should not be included in the reconstructed operating statement. Using the NOI and a Ro of 11.0 percent, calculate the property’s indicated market value. Round your answer to the nearest $500.