The Reverend Shaman Oracle is an ordained minister in the Church of Prophetic Prophecy in Palm Desert, California. In the current year, Shaman receives payments of $ 150,000 from the church for his services. Of this amount, the church designates $ 60,000 for compensation and $ 90,000 as a housing allowance. Shaman and his wife own a home and have actual expenditures during the year for the home of $ 72,000. The house is located in a well-established rental market, and the fair market rental value of the home for the current year is $ 55,000. Shaman wants to know how he and his wife should report these amounts on their current year’s tax return. After appropriate research, write a letter to Shaman explaining your findings. His address is P. O. Box 1234, Palm Desert, California 92211.