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NEW QUESTION: 1
Barkley owns a vacation cabin that was rented to unrelated parties for 10 days during the year for $2,500.
The cabin was used personally by Barkley for three months and left vacant for the rest of the year.
Expenses for the cabin were as follows:
Real estate taxes $1,000
Maintenance and utilities $2,000
How much rental income (loss) is included in Barkley's adjusted gross income?
A. $(500)
B. $0
C. $(1,500)
D. $500
Answer: B
Explanation:
Explanation
RULE: If a vacation residence is rented for less than 15 days per year, it is treated as a personal
residence. The rental income is excluded from income, and mortgage interest (first or second home) and
real estate taxes are allowed as itemized deductions. Depreciation, utilities, and repairs are not
deductible.
Choice "a" is correct. Applying the rule above, if a vacation residence is rented for less than 15 days per
year, it is treated as a personal residence. The rental income ($2,500 in this case) is excluded from
income. A Schedule E is not filed for this property (i.e., no income is reported, the taxes are reported as
itemized deductions, and the maintenance and utilities are not deductible), so the effect on AGI is zero.
Choice "b" is incorrect. This assumes that the property taxes are reported as itemized deductions but that
the rental income ($2,500) less the maintenance and utilities ($2,000) are reported net on Schedule E.
Per the above RULE, the rental income is excluded from income, and the maintenance and utilities are
not deductible.
Choice "c" is incorrect. This assumes that all of the items shown are reported net on the Schedule
E-$2,500 - $1,000 - $2,000 = ($500). Per the above RULE, the rental income is excluded from income, the
maintenance and utilities are not deductible, and the property taxes are reported on Schedule A as an
itemized deduction.
Choice "d" is incorrect, per the above rule and discussion.

NEW QUESTION: 2
The focal length determines how far the object can be seen and how wide the scene is.
A. TRUE
B. FALSE
Answer: A

NEW QUESTION: 3
You are provisioning a new customer for access to your Layer 3 VPN. The customer is using
172.16.35.0/24 as their internal IP address space, which is also being used by an existing Layer 3 VPN customer. The two customers share many PE routers in common across your network. Which mechanism allows these duplicate addresses to exist in your network?
A. route origin
B. route refresh
C. route distinguisher
D. route target
Answer: C

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