Question 36 of 75 Mary Beth owns a rental house. Her current tenant, Carl, signed a two-year lease and moved into the house in January of last year. At that time, Carl paid Mary Beth $1,600 for the first month's rent, $1,600 for the last month's rent, and $1,600 as a security deposit. Carl paid the $1,600 monthly rent in cash on the first of each month during the year, except in November when he replaced the water heater in exchange for his rent. The water heater would have cost Mary Beth $1,100 to purchase and install. How much rental income must Mary Beth report for last year? O $18,700 O $20,300 O $20,800 O $22,400 Question 37 of75. DONOTUACwdwa cteutldta Senerally, when a taxpayer dipposes of their entre interest i a passive activity where all gain or loss is recognized, any prior-year unallowed passive activity losses are O Included with current-year passive activity gain or loss and allowed in full. O Deducted against ordinary income up to $3,000 and carried forward until depleted. O Permanently disallowed O Carried forward to offset any future passive activity gains