A tenant occupies 2,500 square feet and pays base rent of $30.00 per square foot. The tenant took occupancy of the space in year 2000 and the base…

A tenant occupies 2,500 square feet and pays base rent of $30.00 per square foot. The tenant took occupancy of the space in year 2000 and the base year stop was $5.25 per square foot. For 2004 the landlord estimated operating expenses and real estate taxes to be $7.25 per square foot. How much will the tenant pay for operating expense & real estate tax recoveries in 2004? Assume that inflation rate is zero.

A.$2,500

B.$5,000

C.$7,500

D.$10,000