$8.$During the year, not a leap year, Fred rented his mountain house for $205$ days and lived in it for $20$ days.$$ During the remaining days of the year, the house was available for rental use.$$ Income and expenses associated with the mountain house were as follows:

Rental income$$ $ $18,000$

Mortgage interest payments$10,000$

Property tax payments$5,000$

Utility and maintenance payments$4,000$

Depreciation$6,000$

If Fred is allowed a choice, he would choose to use the IRS approach to allocate property taxes and mortgage interest.$$ Calculate Fred's taxable net income$/$loss from the mountain house, and also the total amount of expenses relating to the house that Fred may deduct $($both for AGI and from AGI$).$ Hint: Determine the correct classification of the mountain house.

Question $8$ options:

a$)$

Net income $($loss$)=$ $$(4,778)$; Total expenses $=$ $$23,222$

b$)$

Net income $($loss$)=$ $$(4,778)$; Total expenses $=$ $$24,111$

c$)$

Net income $($loss$)=$ $$465$; Total expenses $=$ $$24,111$

d$)$

Net income $($loss$)=$ $$0$; Total expenses $=$ $$18,000$

e$)$

Net income $($loss$)=$ $$0$; Total expenses $=$ $$19,333$