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John Has an Extra Bedroom in His House That He

Question 51

Multiple Choice

John has an extra bedroom in his house that he occasionally rents out using the service Airbnb.John charges $100 per night,and his room is occupied by a renter approximately 100 nights per year.He thinks that if he repaints the room the photos he posts on Airbnb to draw customers will be more attractive,allowing him to charge $110 dollars per night and to rent the room for 120 nights per year.John's tax rate is 28%.What is the annual,after-tax,incremental revenue that John expects from his painting project?


A) $13,200
B) $9,504
C) $3,200
D) $2,304

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