During the current year, Donna, a single taxpayer, reports the following items of income and expenses: Income: Salary Bank account interest Capital gain on an asset held less than one year Rental income from residential rental house (Real Property Trade or Business) Expenses/losses: Interest on principal residence Real estate taxes on principal residence Medical expenses (not reimbursed by insurance) Capital loss on an asset held less than one year Expenses related to rental property (Real Property Trade or Business) Mortgage interest Repairs Taxes Depreciation Compute Donna's taxable income. $86,000 2,300 3,000 12,500 8,000 1,000 5,000 7,000 6,000 2,400 700 1,200