Marlene Is a Single Taxpayer with an Adjusted Gross Income

question 136

Multiple Choice

Marlene is a single taxpayer with an adjusted gross income of $140,000. In addition to her personal residence, Marlene owns a ski cabin in Vail. She uses the cabin for 40 days during the current year and rents it out to unrelated parties for 80 days, receiving rent of $10,000. Marlene's costs before any allocation related to the cabin are as follows: Based on the above information, what is her allowable depreciation deduction?

• A) $ - 0 -
• B) $1,000
• C) $3,000
• D) $4,000
• E) $6,000

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Definitions:

Jensen's Measure

A performance evaluation measure that calculates the excess return a fund generates over its expected return, given its level of risk.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities such as U.S. Treasury bonds.

Beta

A measure of a security's volatility in relation to the overall market; a beta greater than 1 indicates greater volatility than the market.

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio is measured, often used to assess the skill of portfolio managers.