In a lease agreement, if a tenant is paying $10 per square foot for 3,000 square feet and 8% of gross income, what is the gross income based on the percentage rent?

To determine the correct gross income based on the percentage rent, we first need to calculate the total base rent being paid by the tenant. In this case, the tenant is paying $10 per square foot for a space of 3,000 square feet. This calculation can be done as follows:

Total Base Rent = Rent Per Square Foot × Total Square Feet

Total Base Rent = $10 × 3,000 = $30,000

Next, we need to consider the total rent the tenant is obligated to pay, which consists of both the base rent and the percentage rent calculated as 8% of the gross income. Let’s denote the gross income as ( G ). The percentage rent would then be:

Percentage Rent = 8% of ( G ) = 0.08G

When the total rent owed by the tenant includes both the base rent and the percentage rent, the equation is set up as follows:

Total Rent = Base Rent + Percentage Rent

Total Rent = $30,000 + 0.08G

For the situation described, we need to solve for ( G ). The total rent can also be expressed in terms of ( G ):

Total Rent = 0.08G + $30