Adams owns a second residence that is used for both personal and rental purposes. During 2010, Adams used the second residence for 50 days and rented the residence for 200 days. Which of the following statements is correct?

a. Depreciation may not be deducted on the property under any circumstances.

b. A rental loss may be deducted if rental-related expenses exceed rental income.

c. Utilities and maintenance on the property must be divided between personal and rental use.

d. All mortgage interest and taxes on the property will be deducted to determine the property’s net income or loss