Problem $-$ Tax Preparation

Rental Real Estate $($Obj$.4)$

Cecily J Cook $($SSN $344-00-5768)$ purchased a two$-$unit apartment building at $1626$ Flat street, Ritzville, Washington, $99270-8224.$ The costs of the land and building were $$20,000$ and $$82,500,$ respectively. Both apartments are the same size, with one on the ground floor and the other upstairs. Cecily has lived in the upstairs apartment since she acquired the building. The tenant pays $$350$ a month for rent. On June $30,$ the tenant moved out. The apartment was vacant until August $1,$ even though Cecily advertised and attempted to rent it$.$ On August $1,$ a new tenant moved in$,$ paying $$400$ per month. Rent is due on the first day of the month. Cecily uses MACRS to depreciate the rental portion of the building.

Information on the apartment follows:

Revenue:

Rent from the first tenant $(6$ months x $$350)$ $$2,100$

Rent from the second tenant $(5$ months x $$400)2,100$

Total Revenue

$$4,{100}_{?}$

Expenses: Entire House

$\backslash$table$[[$Real estate taxes,$$1,700$