Jacqueline owns a condominium on an island in Washington that was rented out all year for $30,000.She incurred the following expenses: $\begin{array}{lr}
\text { Mortgage interest } & 1,300 \
\text { Property taxes } & 800 \
\text { Insurance } & 1,500 \
\text { Utilities } & 1,800 \
\text { Repairs } & 300 \
\text { Depreciation } & 4,000
\end{array}$ What amount of net income or loss does Jacqueline report from this rental property?

Question

Quizplus · Accepted Answer

Jacqueline's net income from the rental property is calculated by subtracting the total expenses from the rental income. The total expenses are the sum of mortgage interest, property taxes, insurance, utilities, repairs, and depreciation, which equals $9,700 ($1,300 + $800 + $1,500 + $1,800 + $300 + $4,000). Subtracting this from the rental income of $30,000 results in a net income of $20,300.

Jacqueline Owns a Condominium on an Island in Washington That