Reference no: EM132503857

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.