Purchase Solution

Depreciation for rental property in the Great Smokey Mountains

Not what you're looking for?

Ask Custom Question

Mackenzie owns a condominium in the Great Smokey Mountains. During the year, Mackenzie uses the condo a total of 27 days. The condo is also rented to tourists for a total of 73 days and generates rental income of $8,900. Mackenzie incurs the following expenses in the condo:

Expense Amount
Mortgage interest $ 3,000
Property taxes 1,500
Utilities 2,500
Insurance 1,800
Depreciation 11,000
Using the Court method of allocating expenses, the amount of depreciation that Mackenzie may take with respect to the rental property will be:
a. $2,476.
b. $4,861.
c. $7,300.
d. $10,000

Purchase this Solution

Solution Summary

The solution calculates the depreciation costs of a rental property owned by Mackenzie.

Solution Preview

The only answer that seems to work is a. $2476. If you take 73% of all ...

Purchase this Solution


Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Learning Lean

This quiz will help you understand the basic concepts of Lean.