Problem 4-10 Rental Income and Expenses (LO 4.7) Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance. expenses total $2,000, and depreciation expense is $4,500. Calculate Sherry's deductible depreciation, the net income or loss from the vacation home, and the loss carryforward, if any. Base allocation on number months, rather than days. If your answer value is zero, enter "0".
Problem 4-10 Rental Income and Expenses (LO 4.7) Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance. expenses total $2,000, and depreciation expense is $4,500. Calculate Sherry's deductible depreciation, the net income or loss from the vacation home, and the loss carryforward, if any. Base allocation on number months, rather than days. If your answer value is zero, enter "0".
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you help me calculate the depreciation below for Problem 4-10?
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Problem 4-10
Rental Income and Expenses (LO 4.7)
Rental income
Expenses:
Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is
$6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance
expenses total $2,000, and depreciation expense is $4,500.
Calculate Sherry's deductible depreciation, the net income or loss from the vacation home, and the loss carryforward, if any.
Base allocation on number months, rather than days. If your answer value is zero, enter "0".
Real estate taxes
Mortgage interest
Utilities and maintenance
Depreciation
Net rental income
Loss carried forward to 2022
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1,100
2,000
1,000 ✓
2,250 X
$
6,000 ✓
ox
0
A Q
350
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