Problem 8-37 (LO 8-2) Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (six weeks) at $925 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 $ 4,340 770 1,305 3,305 1,935 5,640 $ $ Schedule E 5,550 Schedule A
Problem 8-37 (LO 8-2) Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (six weeks) at $925 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 $ 4,340 770 1,305 3,305 1,935 5,640 $ $ Schedule E 5,550 Schedule A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 8-37 (LO 8-2)
Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (six weeks) at $925 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
$ 4,340
770
1,305
3,305
1,935
5,640
$
$
Schedule E
5,550
Schedule A
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