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Question - Katarina owns a condominium in the Hilton Head Island, South Carolina. During the year, Katarina uses the condo total of 30 days. The condo is also rented to vacationers for a total of 120 days and generates rental income of $17,500. Katarina incurs the following expenses:
Expense Amount
Mortgage interest $7,500
Property taxes 4,800
Utilities 1,800
Insurance 1,200
Depreciation 9,000
Using the Bolton method of allocating expenses, the amount of depreciation that Katarina may take with respect to the rental property will be
A) $5,260.
B) $7,250
C) $7,660.
D) $9,000.
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