Leslie and Devin Own a Beach Cottage That They Rented

Leslie and Devin own a beach cottage that they rented 30 days for $4,500.They used the cottage for personal use for 45 days during the year.The allocated expenses related to the cottage total $6,000,resulting in a net loss of $1,500 for this rental activity.What is the proper tax treatment of these amounts by Leslie and Devin?

A) None of the amounts have to be reported.
B) Report net loss of $1,500 on Schedule E.
C) Report income and expenses on Schedule E but expenses cannot exceed income.
D) Report net income of $4,500 on Schedule E.