Alexa owns a condominium near Cocoa Beach in Florida. This year,she incurs the following expenses in connection with her condo:

Insurance	$	2,000
Mortgage interest		6,500
Property taxes		2,000
Repairs & maintenance		1,400
Utilities		2,500
Depreciation		14,500

During the year, Alexa rented out the condo for 100 days. Shedid not use the condo at all for personal purposes during the year.Alexa’s AGI from all sources other than the rental property is$200,000. Unless otherwise specified, Alexa has no sources ofpassive income.

Assume that in addition to renting the condo for 100 days, Alexauses the condo for 8 days of personal use. Also assume that Alexareceives $30,000 of gross rental receipts and her itemizeddeductions exceed the standard deduction before consideringexpenses associated with the condo. Answer the followingquestions:

Note that the home is considered to be a nonresidence withrental use.

a. What is the total amount of for AGIdeductions relating to the condo that Alexa may deduct in thecurrent year? Assume she uses the IRS method of allocating expensesbetween rental and personal days. (Do not roundintermediate calculations. Round your final answers to the nearestwhole dollar amount.)

b. What is the total amount of fromAGI deductions relating to the condo that Alexa may deduct in thecurrent year? Assume she uses the IRS method of allocating expensesbetween rental and personal days. (Do not roundintermediate calculations. Round your final answers to the nearestwhole dollar amount.)

c. Would Alexa be better or worse off aftertaxes in the current year if she uses the Tax Court method ofallocating expenses?

Better off

Worse off