Marlene Is a Single Taxpayer with an Adjusted Gross Income

question 117

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:

$\begin{array} {lr } \text { Mortgage interest and property taxes } &\$ 9,000 \\ \text {Utilities, maintenance, and repairs } &4,500 \\ \text { Depreciation } &6,000\end{array}$
Based on the above information,what is her allowable depreciation deduction?

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Definitions:

Net Wealth

Net wealth represents the total value of all financial and non-financial assets owned by an individual, corporation, country, or other entity, minus any liabilities.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income, indicating how spending is expected to increase with income.

Price Level

A measure of the average prices of goods and services in an economy at a specific time.

Consumption Function

A mathematical representation showing the link between total consumer expenditure and the gross national income.