A condominium corporation requires a special levy of $500,000 for parking lot resurfacing. The levy is to be based on unit factors. Mr. Smith owns a unit with a unit factor of 50, and the total unit factors for the entire corporation are 5,000. What is Mr. Smith’s portion of the special levy?

Question: A condominium corporation requires a special levy of $500,000 for parking lot resurfacing. The levy is to be based on unit factors. Mr. Smith owns a unit with a unit factor of 50, and the total unit factors for the entire corporation are 5,000. What is Mr. Smith’s portion of the special levy?

Answer options:

• $2,500
• $5,000 ✅ $10,000
• $50,000

Correct answer: $10,000

Explanation: To calculate Mr. Smith's portion, divide his unit factor by the total unit factors and multiply by the total levy: (50 unit factors / 5,000 total unit factors) * $500,000 = 0.01 * $500,000 = $5,000. This is the correct calculation.