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During the current year, Kendail incurs the foliowing expenses with respect to her beachfront condominium in Hawail: (Click the kon to view the data ) In addition to the expenses listed above, Kendall could have deducted a total of $8,800 depreciation if the property had been acquired only for investment purposes. During the year, Kendall uses the condominium 40 days for vacation. She also rents it out for a total of 120 days during the year, generating a total gross income of $8,200. Read the gecuirements Requirement a. What is the total amount of deductions for and from AGI that Kendall may take during the current year with respect to the condominium using the IRS allocation method? (For purposes of this problem, use the allocation formula set forth by Sec. 280A Enter D for zero amounts.) Tem For AGI From AGI Insurance Repairs and maintenance Interest on morigage Property taxes Utiides Depreciation Total deductions Requirement b. What is the effoct on the basis of the condominium? The basis of the condominium s More Info tem Amownt Insurance Repairs and maintenance Interest on mortgage Property taxes Utaties $580 720 3,400 2,200 400 increased by $2,725 increased by $8,800 decreased by $2,725 decreased by $8,800. neither increased nor decreased Done

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