I:6-54 Rental of Vacation Home. During the current year, Kim incurs the following expenses with respect to her beachfront condominium in Hawaii:

Expense Items Amount Insurance $ 500 Repairs and maintenance 700 Interest on mortgage 3,000 Property taxes 1,000 Utilities 800 Depreciation $8,000 During the current year, Kim used the condominium 20 days for vacation. She rented it out for a total of 60 days, generating a total gross income of $9,100.

a. What are the total amounts of deductions for and from AGI that Kim may take with respect to the condominium using the IRS allocation method?

b. What is the effect on the basis of the condominium?