Information regarding Noah and Joan's rental property is reproduced here. The rental property located at 16 Oakwood Ave, Unit A, Dayton, OH 45409. Noah provides the management services for the rental including selection of tenants, maintenance, repairs, rent collection, and other services as needed. It was rented for the entire year. The revenue and expenses for the year are as follows: Rental income $16,200 Insurance 800 Interest expense 5,800 Property taxes 1,500 Miscellaneous expenses 500 The home was acquired for $85,000 in 2006. No improvements have been made to the property.

Rental income includes $1,150 per month for two months under the previous lease (which ended February 28, 2022). The new lease is $1,300 per month for ten months under the new lease but the tenant paid only $900 in May 2022 because the tenant paid $400 for repairs to the apartment, and with the Arcs permission, reduced Mays rent by $400. The new lease also required the tenant to pay last months $1,300 rent in February 2022. The home was acquired for $85,000 in 2006. On May 12, 2022, the Arcs installed new fixtures (7-year recovery period) at a cost of $3,500. They wish to maximize the cost recovery on the new fixtures but make no elections. How do you fill out Schedule E for 2022?