Mackensie owns a condominium in the Great Smokey Mountains. During the year, Mackensie uses the condo a total of 21 days. The condo is also rented to tourists for a total of 79 days and generates rental income of 12,500. Mackensie also incurs the following expenses: Mortgage interest 4,100, property taxes 1,900, Utiites 2,200, insurance 1,200, depreciation 10,000 Using the IRS method allocating expenses, calculate the amount of depreciation that Mackensie may take with respect to the rental property.
Mackensie owns a condominium in the Great Smokey Mountains. During the year, Mackensie uses the condo a total of 21 days. The condo is also rented to tourists for a total of 79 days and generates rental income of 12,500. Mackensie also incurs the following expenses: Mortgage interest 4,100, property taxes 1,900, Utiites 2,200, insurance 1,200, depreciation 10,000 Using the IRS method allocating expenses, calculate the amount of depreciation that Mackensie may take with respect to the rental property.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mackensie owns a condominium in the Great Smokey Mountains. During the year,
Mackensie uses the condo a total of 21 days. The condo is also rented to tourists for
a total of 79 days and generates rental income of 12,500. Mackensie also incurs the
following expenses:
Mortgage interest 4,100, property taxes 1,900, Utiites 2,200, insurance 1,200,
depreciation 10,000
Using the IRS method allocating expenses, calculate the amount of depreciation
that Mackensie may take with respect to the rental property.
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