Paul owns a second home at the lake. during the year, he spent three weeks (21 days) at the lake home, rented it to his daughter for three three-day weekends for a total of $220, and rented it to friends for ten weeks (70 days) at fair rental value of $300 per week. his expenses for the year include:
• depreciation $2,000
• insurance $100
• mortgage interest $1,000
• real estate taxes $2,000
• utilities $1,000
what amount may he deduct for expenses on his schedule e, rental income?

a. $2,100.
b. $3,000.
c. $3,220.
d. $4,620

The stock of grommet corporation, a u.s. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. grommet owns 95 percent of the outstanding stock of staple inc., also a u.s. company. staple owns 100 percent of the outstanding stock of clip corporation, a canadian company. grommet and clip each own 50 percent of the outstanding stock of fastener inc., a u.s. company. grommet and staple each own 50 percent of the outstanding stock of binder corporation, a u.s. company. which of these corporations form an affiliated group eligible to file a consolidated tax return?