Multiple Choice $4-24$

Rental Income and Expenses $($LO $4\mathrm{.}7)$

Juanita rents her vacation condo for $120$ days and uses the condo for herself for $20$ days. What allocation percentage will Juanita apply to the condo's operating expenses $($for example, insurance, utilities, etc.$)$ to compute the rental portion under the IRS allocation method?

a$.85\mathrm{.}7$ percent $(\frac{120}{140})$

b$.38\mathrm{.}4$ percent $(\frac{140}{365})$

c$.32\mathrm{.}8$ percent $(\frac{120}{365})$

d$.5\mathrm{.}4$ percent $(\frac{20}{365})$