Jacqueline owns a condominium on an island in Washington that was rented out all year for $30,000. She incurred the following expenses: What amount of net income or loss does Jacqueline report from this rental property?

Question

Jacqueline owns a condominium on an island in Washington that was rented out all year for $30,000. She incurred the following expenses:  What amount of net income or loss does Jacqueline report from this rental property?

Quizplus · Accepted Answer

To calculate the net income or loss, we need to subtract the total expenses from the rental income. Therefore, 
Net Income/Loss = Rental Income - Total Expenses
Net Income/Loss = $30,000 - ($6,000 + $2,000 + $1,500 + $300 + $9,000)
Net Income/Loss = $30,000 - $18,800
Net Income/Loss = $11,200
Since the result is positive, it means that Jacqueline has a net income of $11,200 from this rental property. Therefore, the best choice is C.

Jacqueline Owns a Condominium on an Island in Washington That