Neil owns a ski lodge in Aspen. His use of this lodge varies from year to year. The annual expenses for the lodge are as follows:
Mortgage interest..............................$24,000
Property taxes....................................12,000
Snow removal.....................................1,000
Yard maintenance..................................800
Utilities.............................................2,000
Repairs and other maintenance................1,200
Annual depreciation...........................12,000
How does Neil treat the income and expense if
a. He uses the lodge for 100 days and rents it out for 10 days at a rate of $150 per day?
b. He uses the lodge for 10 days and rents it out for 100 days at $150 per day?
c. He uses the lodge for 50 days and rents it out for 60 days at $150 per day?