4-73. Donald rents out his vacation home for 9 months and lives in his vacation home for the remainder of the year. His gross rental income for 2018 is $7,200. The expenses attributable to the vacation home for the entire year are as follows: Real estate taxes Interest on mortgage loan Utilities $2,000 4,000 1,200 Repairs/maintenance Depreciation What amount would Donald report as net income or loss from the rental of the vacation home? Expert Answer 600 3,500 Anonymous answered this Was this answer helpf 38 answers Solution Gross Rental Income = $7200 Less all the expense as per the 9 months rented period and which is 7596 of whole year. Real State taxes (2000*7596) = $1500 Intt. on mortgage loan (4000*75%) = $3000 Utilities (1200*7596) = S900 Repairs/maintenance (600 7596) = $450 Depreciation (3500*75%) = S2625 Net Income/Loss = $7200- $1500 - $3000 - $90 - $450 - S2625 -$1275 (loss) Answer is $0 in the book. Iwould like to know why 4-73. Donald rents out his vacation home for 9 months and lives in his vacation home for the remainder of the year. His gross rental income for 2018 is $7,200. The expenses attributable to the vacation home for the entire year are as follows: Real estate taxes Interest on mortgage loan Utilities $2,000 4,000 1,200 Repairs/maintenance Depreciation What amount would Donald report as net income or loss from the rental of the vacation home? Expert Answer 600 3,500 Anonymous answered this Was this answer helpf 38 answers Solution Gross Rental Income = $7200 Less all the expense as per the 9 months rented period and which is 7596 of whole year. Real State taxes (2000*7596) = $1500 Intt. on mortgage loan (4000*75%) = $3000 Utilities (1200*7596) = S900 Repairs/maintenance (600 7596) = $450 Depreciation (3500*75%) = S2625 Net Income/Loss = $7200- $1500 - $3000 - $90 - $450 - S2625 -$1275 (loss) Answer is $0 in the book. Iwould like to know why