Lori and Donald Own a Condominium in Colorado Springs,Colorado,that They

Multiple Choice

Lori and Donald own a condominium in Colorado Springs,Colorado,that they rent out part of the time and use during the summer.The rental property is classified as personal/rental property and their personal use is determined to be 75% (based on the IRS method) .They had the following income and expenses for the year (before any allocation) : $\begin{array}{lll}\text { Gross rental income}&\$2,000\\\text {Interest and taxes }&3,200\\\text { Utilities and maintenance}&2,200\\\text {Depreciation }&4,000\\\end{array}$
How much net loss should Lori and Donald report for their condominium on their tax return this year?

A) $0.
B) $3,350 loss.
C) $7,400 loss.
D) $9,000 loss.