Brady Owns a Second Home That He Rents to Others

question 68

Multiple Choice

Brady owns a second home that he rents to others. During the year, he used the second home for 50 days for personal use and for 100 days for rental use. Brady collected $20,000 of rental receipts during the year. Brady allocated $7,000 of interest expense and property taxes, $10,000 of other expenses, and $4,000 of depreciation expense to the rental use. What is Brady's net income from the property and what type and amount of expenses will he carry forward to next year, if any?

• A)$0 net income. $1,000 depreciation expense carried forward to next year.
• B)($1,000)net loss. $0 expenses carried over to next year.
• C)$0 net income. $1,000 of other expense carried over to next year.
• D)$0 net income. $1,000 of interest expense and property taxes carried over to next year.

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Definitions:

Morphine

A powerful opioid analgesic drug used to relieve severe or chronic pain by acting directly on the central nervous system.

Utilitarianism

An ethical theory that posits the best action is the one that maximizes utility, or the greatest happiness for the greatest number of people.

Beneficence

The ethical principle that requires actions to promote good and benefit others, often guiding healthcare professionals.

Autonomy

The capability of a person to make an informed, uncoerced decision about their own life and actions.