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Problem 6-46 (LO. 3) Piper owns a vacation cabin in the Tennessee mountains. Without considering...

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Accounting

Problem 6-46 (LO. 3)

Piper owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it herself for four weeks. The total expenses for the year are $10,000 mortgage interest; $1,500 property tax; $2,000 utilities, insurance, and maintenance; and $3,200 depreciation.

If an amount is zero, enter "0".

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a. What effect does the rental of the vacation cabin have on Piper's AGI?

Piper reports rental income of $fill in the blank 774701013ff2003_1 and rental expenses of $fill in the blank 774701013ff2003_2 for AGI.

Question Content Area

b. What expenses can Piper deduct, and how are they classified (i.e., for or from AGI)?

Note: Assume that she itemizes her deductions.

a. Utilities $fill in the blank cbf29801800103c_1 For AGIFrom AGINot deductible
b. Insurance $fill in the blank cbf29801800103c_3 For AGIFrom AGINot deductible
c. Property Taxes $fill in the blank cbf29801800103c_5 For AGIFrom AGINot deductible
d. Mortgage interest $fill in the blank cbf29801800103c_7 For AGIFrom AGINot deductible
e. Maintenance expenses $fill in the blank cbf29801800103c_9 For AGIFrom AGINot deductible
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