What does the rental activity have on her AGI for this year?- increased by, decreased by, or no effect? Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses inconnection with her condo:$ 2,2506,875InsuranceMortgage interestProperty taxesRepairs & maintenanceUtilities2,2001,5253,00015,125DepreciationDuring the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposesduring the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwisespecified, Alexa has no sources of passive income.Assuming Alexa receives $21,000 in gross rental receipts, answer the following questions: (Leave no answerblank. Enter zero if applicable.)a. What effect does the rental activity have on her AGI for the year?AGIno effect24

Adjusted Gross Income is a measure of income calculated from gross total income which is from all…

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activity have on her AGI for this year? - increased by, decreased by, or no effect?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

What does the rental activity have on her AGI for this year? - increased by, decreased by, or no effect?

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in
connection with her condo:
$ 2,250
6,875
Insurance
Mortgage interest
Property taxes
Repairs & maintenance
Utilities
2,200
1,525
3,000
15,125
Depreciation
During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes
during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise
specified, Alexa has no sources of passive income.
Assuming Alexa receives $21,000 in gross rental receipts, answer the following questions: (Leave no answer
blank. Enter zero if applicable.)
a. What effect does the rental activity have on her AGI for the year?
AGI
no effect
24

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