Question
1) Liz, who is single in 2020, lives in a single-family home and owns a second single family home that she rented for the entire
1) Liz, who is single in 2020, lives in a single-family home and owns a second single family home that she rented for the entire year at a fair rental rate. Liz had the following items of income and expense during the current year.
Income:
Gross salary and commissions from Ace Corporation | $50,000 |
Rent received from tenant in Liz's rental house | 13,000 |
Dividends received on her portfolio of stocks | 5,000 |
Expenses:
Interest and property taxes on her own home | 9,000 |
Taxes, interest and repair expenses on rental house | 3,500 |
Depreciation expense on rental house | 2,300 |
What is her adjusted gross income for the year?
A) $64,300
B) $53,200
C) $62,200
D) $68,000
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