Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance Mortgage interest. Property taxes Repairs & maintenance. Utilities 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. $ 2,900 7,850 2,720 1,850 Assuming Alexa receives $23,600 in gross rental receipts, answer the following questions: Note: Leave no answer blank. Enter zero if applicable. Required: a. What effect does the rental activity have on her AGI for the year? b. Assuming that Alexa's AGI from other sources is $90,000, what effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property 4,300 16,750 c. Assuming that Alexa's AGI from other sources is $120,000, what effect does the rental activity have on Alexa's AGI? Alexa makes al decisions with respect to the property. d. Assume that Alexa's AGI from other sources is $200,000. This consists of $136,500 salary, $13,600 of dividends, $30,400 of long- term capital gain, and net rental income from another rental property in the amount of $19,500. What effect does the Cocoa Beach condo rental activity have on Alexa's AGI? Required A Complete this question by entering your answers in the tabs below. Required B. AGI Required C Required D What effect does the rental activity have on her AGI for the year?
Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance Mortgage interest. Property taxes Repairs & maintenance. Utilities 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. $ 2,900 7,850 2,720 1,850 Assuming Alexa receives $23,600 in gross rental receipts, answer the following questions: Note: Leave no answer blank. Enter zero if applicable. Required: a. What effect does the rental activity have on her AGI for the year? b. Assuming that Alexa's AGI from other sources is $90,000, what effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property 4,300 16,750 c. Assuming that Alexa's AGI from other sources is $120,000, what effect does the rental activity have on Alexa's AGI? Alexa makes al decisions with respect to the property. d. Assume that Alexa's AGI from other sources is $200,000. This consists of $136,500 salary, $13,600 of dividends, $30,400 of long- term capital gain, and net rental income from another rental property in the amount of $19,500. What effect does the Cocoa Beach condo rental activity have on Alexa's AGI? Required A Complete this question by entering your answers in the tabs below. Required B. AGI Required C Required D What effect does the rental activity have on her AGI for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please don't give image format
Transcribed Image Text:Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo:
Insurance
Mortgage interest.
Property taxes
Repairs & maintenance.
Utilities
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.
$ 2,900
7,850
2,720
1,850
4,300
16,750
Assuming Alexa receives $23,600 in gross rental receipts, answer the following questions:
Note: Leave no answer blank. Enter zero if applicable.
Required:
a. What effect does the rental activity have on her AGI for the year?
b. Assuming that Alexa's AGI from other sources is $90,000, what effect does the rental activity have on Alexa's AGI? Alexa makes all
decisions with respect to the property
c. Assuming that Alexa's AGI from other sources is $120,000, what effect does the rental activity have on Alexa's AGI? Alexa makes all
decisions with respect to the property.
d. Assume that Alexa's AGI from other sources is $200,000. This consists of $136,500 salary, $13,600 of dividends, $30,400 of long-
term capital gain, and net rental income from another rental property in the amount of $19,500. What effect does the Cocoa Beach
condo rental activity have on Alexa's AGI?
Complete this question by entering your answers in the tabs below.
Required A
AGI
Required B Required C
Required D
What effect does the rental activity have on her AGI for the year?
Transcribed Image Text:Required A Required B
Required C
AGI
What effect does the rental activity have on her AGI for the year
increases by
Required D
increases by
decreases by
no effect
< Required A
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