Bill is the owner of a house with two identical apartments. He resides in one apartment and rents the other apartment to a tenant. The tenant made timely monthly rental payments of $550 per month for the months of January through December 2019. The following expenses were incurred on the entire building: $$\begin{array} { l r }
\text { Utilities } & \$ 3,600 \
\text { Maintenance and repairs } & 900 \
\text { Insurance } & 500
\end{array}$$ In addition, depreciation allocable to the rented apartment is $1,500. What amount should Bill report as net rental income for 2019?
A)$0
B)$100
C)$1,400
D)$2,600
E)None of these

Question

Bill is the owner of a house with two identical apartments. He resides in one apartment and rents the other apartment to a tenant. The tenant made timely monthly rental payments of $550 per month for the months of January through December 2019. The following expenses were incurred on the entire building: $$\begin{array} { l r } 
\text { Utilities } & \$ 3,600 \
\text { Maintenance and repairs } & 900 \
\text { Insurance } & 500
\end{array}$$ In addition, depreciation allocable to the rented apartment is $1,500. What amount should Bill report as net rental income for 2019?
A)$0
B)$100
C)$1,400
D)$2,600
E)None of these

Quizplus · Accepted Answer

The Answer of Bill is the owner of a house with two identical apartments. He resides in one apartment and rents the other apartment to a tenant. The tenant made timely monthly rental payments of $550 per month for the months of January through December 2019. The following expenses were incurred on the entire building: $$\begin{array} { l r } 
\text { Utilities } & \$ 3,600 \
\text { Maintenance and repairs } & 900 \
\text { Insurance } & 500
\end{array}$$ In addition, depreciation allocable to the rented apartment is $1,500. What amount should Bill report as net rental income for 2019?
A)$0
B)$100
C)$1,400
D)$2,600
E)None of these