5. During the year, Mary rented her vacation home for 90 days and spent 30...
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Accounting
5. During the year, Mary rented her vacation home for 90 days and spent 30 days there. The gross rental income from the property was $5,000. She incurred the following expenses:
Mortgage Interest: $3,000
Real Estate Expenses: $1,500
Utilities: $1,300
Depreciation: $4,000
(a) Compute Mary's allowable deductions using the IRS method. (For ease of computation, you may treat a year as 360 days)
(b) Compute Mary's allowable deductions using the Bolton method. (For ease of computation, use 360 as number of days in the year)
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