Question
I. Roy owns a vacation house in Big Bear. In 2019, he earns $2,400 of rental income and incurs $3,700 of rental expenses (that is,
I. Roy owns a vacation house in Big Bear. In 2019, he earns $2,400 of rental income and incurs $3,700 of rental expenses (that is, expenses allocated to rental days) from this vacation house. Assume he is an active participant in the rental. In 2019, Roy rents his vacation house for 12 days and used it personally for 60 days. Which of the following statement is true?
a. His AGI remains unchanged, and he has $1,300 rental loss to carry forward.
b. His AGI increase by $2,400
c. His AGI decrease by $1,300
d. His AGI remains unchanged, he has no rental loss to carry forward
II. Roy owns a vacation house in Big Bear. In 2019, he earns $2,400 of rental income and incurs $3,700 of rental expenses (that is, expenses allocated to rental days) from this vacation house. Assume he is an active participant in the rental. In 2019, Roy rents his vacation house for 60 days and used it personally for 12 days. Which of the following statement is true?
a. His AGI remains unchanged, and he has $1,300 rental loss to carry forward.
b. His AGI increase by $2,400
c. His AGI decrease by $1,300
d. His AGI remains unchanged, he has no rental loss to carry forward
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Introduction To Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
3rd Edition
0073048836, 9780073048833
