Mackensie owns a condominium in the Rocky Mountains. During the year, Mackensie uses the condo a total of 23 days. The condo is also rented to tourists for a total of 77 days and generates rental income of $10,900. Mackensie incurs the following expenses in the condo:

Using the court's method of allocating expenses, the amount of depreciation that Mackensie may take with respect to the rental property will be 

A) $0. 

B) $1,044. 

C) $5,796. 

D) $11,000

Transcribed Image Text:

Expense Mortgage interest Property taxes Utilities Insurance Depreciation Amount $5,000 3,500 2,500 1,800 11,000 Expense Mortgage interest Property taxes Utilities Insurance Depreciation Amount $5,000 3,500 2,500 1,800 11,000

Answer rating: 100% (QA)

Required solution The right option is 5796 The depreciation will be the lower of the two a The propo... View the full answer