Girardo Owns a Condominium in Key West The Amount of Depreciation That Girardo May Deduct with Respect

question 86

Multiple Choice

Girardo owns a condominium in Key West.During the year,Girardo uses the condo a total of 22 days.The condo is also rented to vacationers for a total of 78 days and generates rental income of $24,000.Girardo incurs the following expenses before allocation:
$$\begin{array} { l r } \text { Mortgage interest } & \$ 8,000 \\\text { Property taxes } & 3,600 \\\text { Utilities } & 4,000 \\\text { Insurance } & 2,400 \\\text { Depreciation } & 22,000\end{array}$$
The amount of depreciation that Girardo may deduct with respect to the rental property is

• A)$ 7,300
• B)$ 9,960
• C)$14,040
• D)$17,160
• E)$22,000

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Definitions:

Legal Dissolution

The process of legally dissolving a corporation or partnership, effectively ending its existence.

Withdrawal

The act of removing funds from an account, or the act by an owner of taking assets out of a business for personal use.

Total Assets

The sum of all resources owned by a company having economic value, as reported on the balance sheet, including both current and long-term assets.

Total Capital

Total capital refers to the sum of a company's debt and equity, representing the total funds that a company can use for its operations, expansion, and investment activities.