Karen Owns a Vacation Home in Door County, Wisconsin

Multiple Choice

Karen owns a vacation home in Door County, Wisconsin. During the year, she rents it out for two weeks and uses it personally for three weeks. Her expenses directly related to renting out the property were utilities $300, and maid service $150. The portion of taxes allocable to the rental activity is $600 and revenue from the rental is $1,000. Karen will

A) report no income and deduct $50.
B) report no income and deduct no rental expenses related to the vacation home.
C) report income of $1,000 and deduct $450 of expenses for adjusted gross income.
D) report income of $1,000 and $150 of expenses from adjusted gross income.
E) report income of $1,000 and deduct $1,000 of expenses for adjusted gross income.