Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance expenses total $2,000, and depreciation expense is $4,500. Calculate Sherry’s deductible depreciation, the net income or loss from the vacation home, and the loss carryforward, if any. Base allocation on number of months, rather than days. If your answer value is zero, enter "0." Line Item Description Amount Amount Rental income   6000 Expenses:       Real estate taxes 1100     Mortgage interest 2000     Utilities and maintenance 1000     Depreciation fill in the blank 5 fill in the blank 6      Net rental income   $fill in the blank 7      Loss carried forward to 2024   $fill in the blank 8

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance expenses total $2,000, and depreciation expense is $4,500.

Calculate Sherry’s deductible depreciation, the net income or loss from the vacation home, and the loss carryforward, if any.

Base allocation on number of months, rather than days. If your answer value is zero, enter "0."

Line Item Description Amount Amount
Rental income   6000
Expenses:    
  Real estate taxes 1100  
  Mortgage interest 2000  
  Utilities and maintenance 1000  
  Depreciation fill in the blank 5 fill in the blank 6
     Net rental income   $fill in the blank 7
     Loss carried forward to 2024   $fill in the blank 8
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