Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (6 weeks) at $890 per week and used it for personal use for 58 days. The total costs of maintaining the home are as follows: Mortgage interest Property taxes Insurance Utilities Repairs Depreciation Required: a. What is the proper tax treatment of this information on their tax return using the Tax Court method? Note: Use 365 days in a year. Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value. Income Mortgage interest Property taxes surance Utilities Repairs Depreciation Net income $ 4,200 700 1,200 3,200 1,900 5,500 x Answer is not complete. Schedule A S Schedule E 5,340✔ 1,900 x 3.440 1,900 x
Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (6 weeks) at $890 per week and used it for personal use for 58 days. The total costs of maintaining the home are as follows: Mortgage interest Property taxes Insurance Utilities Repairs Depreciation Required: a. What is the proper tax treatment of this information on their tax return using the Tax Court method? Note: Use 365 days in a year. Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value. Income Mortgage interest Property taxes surance Utilities Repairs Depreciation Net income $ 4,200 700 1,200 3,200 1,900 5,500 x Answer is not complete. Schedule A S Schedule E 5,340✔ 1,900 x 3.440 1,900 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (6 weeks) at $890 per week
and used it for personal use for 58 days. The total costs of maintaining the home are as follows:
Mortgage interest
Property taxes
Insurance
Utilities
Repairs
Depreciation
Required:
a. What is the proper tax treatment of this information on their tax return using the Tax Court method?
Note: Use 365 days in a year. Round your intermediate computations to 5 decimal places and final answers to nearest whole
dollar value.
Income
Mortgage interest
Property taxes
Insurance
Utilities
Repairs
Depreciation
Net income
$ 4,200
700
1,200
3,200
1,900
5,500
$
Answer is not complete.
Schedule E
5,340
1,900 X
3.440
Schedule A
1,900 X
ww
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