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Mackensie Owns a Condominium in the Rocky Mountains Using the Court's Method of Allocating Expenses and Assuming a Uses

Question 120

Multiple Choice

Mackensie owns a condominium in the Rocky Mountains.During the year,Mackensie uses the condo a total of 23 days.The condo is also rented to tourists for a total of 77 days and generates rental income of $10,900.Mackensie incurs the following expenses in the condo:  Expense  Amount  Mortgage interest $5,000 Property taxes 3,500 Utilities 2,500 Insurance 1,800 Depreciation 11,000\begin{array} { | l | r | } \hline \text { Expense } & \text { Amount } \\\hline \text { Mortgage interest } & \$ 5,000 \\\hline \text { Property taxes } & 3,500 \\\hline \text { Utilities } & 2,500 \\\hline \text { Insurance } & 1,800 \\\hline \text { Depreciation } & 11,000 \\\hline\end{array} Using the court's method of allocating expenses and assuming a 365-day year,the amount of depreciation that Mackensie may take with respect to the rental property will be


A) $0.
B) $1,044.
C) $5,796.
D) $11,000

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