Stephen and Joy own a duplex in Newport Beach,CA.They live in one unit and rent the other to another couple.Their rental income for the year was $24,000.They incurred the following expenses for the entire duplex: What amount of net income from the duplex should Stephen and Joy report for the current year?
A) $7,300
B) $9,400
C) $16,700
D) $24,000

Question

Stephen and Joy own a duplex in Newport Beach,CA.They live in one unit and rent the other to another couple.Their rental income for the year was $24,000.They incurred the following expenses for the entire duplex:  What amount of net income from the duplex should Stephen and Joy report for the current year?
A) $7,300 
B) $9,400 
C) $16,700 
D) $24,000

Quizplus · Accepted Answer

To calculate the net income from the duplex, we need to subtract the total expenses from the rental income. Therefore, the net income from the duplex for Stephen and Joy is:

$24,000 (rental income) - $2,500 (property tax) - $8,700 (insurance, maintenance, and repairs) - $6,100 (mortgage interest) - $700 (utilities) = $16,700

Therefore, the best choice is option C.

Stephen and Joy Own a Duplex in Newport Beach,CA