The Super Bowl Is Played in Tasha's Home Town

question 69

Multiple Choice

The Super Bowl is played in Tasha's home town.Tasha moves out of her house for 10 days and stays with her parents.She rents her house for a very high fee to a crew from ESPN.With respect to this rental activity,Tasha will

• A)report the rental income but be allowed a deduction for AGI for the related expenses (e.g.,interest,taxes,utilities,depreciation).
• B)report the rental income but be allowed a deduction from AGI for the related expenses (e.g.,interest,taxes,utilities,depreciation).
• C)report the rental income,but she will not be allowed any deductions other than the mortgage interest and property taxes.
• D)not be required to report the income,but she will not take any deductions other than her normal mortgage interest and property taxes.

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Definitions:

Addition Law

A probability law used to compute the probability of the union of two events. It is P(A ∙ B) = P(A) + P(B) − P(A ∩ B). For mutually exclusive events, P(A ∩ B) = 0; in this case the addition law reduces to P(A ∙ B) = P(A) + P(B).

Probability

The evaluation of how likely it is for an event to happen.

Independent Events

Two or more events where the occurrence of one does not affect the probability of the others occurring.

Conditional Probability

The probability of an event given that another event already occurred. The conditional probability of A given B is P(A ∣ B) = P(A ∩ B)/P(B).