Carmen owns a house that she rents out for $500 per month. Her expenses for the 2017 tax per year are as follows:

Real estate taxes $900

Mortgage 4,000

Insurance 300

General repairs 320

Carmen bought the property in March of 2013, and her basis for depreciation on the house is $100,000. She uses straight line depreciation with a 25 year life and no salvage value.

a) Calculate the amount of Carmen's depreciation expense per year

b) Calcuate Carmen's net income or loss from renting the house if her gross rental income is $600,000 ( $500x12 months ) before consideration of passive loss rule.