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

“Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: (Show calculations where applicable)Insurance \$3,600Mortgage interest 10,650Property taxes 2,650Repairs & maintenance 630Utilities 3,200Depreciation 17,300During the year, Alexa rented out the condo for 130 days. She did 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 of passive income.Assume that in addition to renting the condo for 130 days, Alexa uses the condo for eight days of personal use. Also assume that Alexa receives \$38,750 of gross rental receipts. Answer the following questions:a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days.b. What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days.c. Assuming that Alexa’s AGI from other sources is \$120,000, what effect does the rental activity have on Alexa’s AGI? Alexa makes all decisions with respect to the property.d. Assume that Alexa’s AGI from other sources is \$200,000. This consists of\$150,000 salary, \$10,000 of dividends, and \$25,000 of long-term capital gain and net rental income from another rental property in the amount of \$15,000.What effect does the Cocoa Beach Condo rental activity have on Alexa’s AGI?”