Bill Is the Owner of a House with Two Identical $$\begin{array} { l r } \text { Utilities } & \$ 3,600 \\\text { Maintenance and repairs } & 900 \\\text { Insurance } & 500\end{array}$$

question 40

Multiple Choice

Bill is the owner of a house with two identical apartments.He resides in one apartment and rents the other apartment to a tenant.The tenant made timely monthly rental payments of $550 per month for the months of January through December 2018.The following expenses were incurred on the entire building: $$\begin{array} { l r } \text { Utilities } & \$ 3,600 \\\text { Maintenance and repairs } & 900 \\\text { Insurance } & 500\end{array}$$ In addition, depreciation allocable to the rented apartment is $1,500.What amount should Bill report as net rental income for 2018?

• A)$0
• B)$100
• C)$1,400
• D)$2,600
• E)None of the above

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Definitions:

Centrally Planned Economies

Economies in which the government makes all decisions about the production and distribution of goods and services.

Production Targets

Objectives set by a company to manufacture and produce a certain amount of goods within a specific timeframe.

Circular Flow Model

An economic model illustrating the flow of goods, services, and funds between households and firms in an economy.

Resource Market

A market where primary factors of production such as labor, capital, and natural resources are bought and sold.