Colin and Megan Own a Cabin in the Mammoth Mountains,California

question 61

Multiple Choice

Colin and Megan own a cabin in the Mammoth Mountains,California.During the year,they rented it for 45 days for $10,000 and used it 12 days for personal use.The expenses for the cabin included $7,000 in mortgage interest,$3,000 in property taxes,$1,200 in utilities,$400 in maintenance,and $3,000 in depreciation.What is their net income or loss from the cabin (without considering the passive loss limitation) ? Use the IRS method for allocation of expenses.(Round your answer to the nearest whole number)

• A)$0.
• B)$1,526 net loss.
• C)$7,632 net loss.
• D)$10,000 net income.

---

Definitions:

Schizophrenic

Relating to or characteristic of schizophrenia, a mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Dichotomy Corollary

A principle in psychology, particularly within George Kelly's personal construct theory, suggesting that a person's construction system is composed of dichotomous constructs, meaning it is organized into two mutually exclusive categories.

Bipolar

A disorder characterized by episodes of mood swings ranging from depressive lows to manic highs.

Personality Theory

A branch of psychology that attempts to explain patterns of thoughts, feelings, and behaviors that make a person unique, through various theoretical perspectives.