Cindy, who is self-employed, maintains an office in her home that comprises 20% (390 square feet) of total floor space. Gross income for her business is $47,900, and her residence expenses are as follows: Real property taxes $4,380 Interest on mortgage 7,300 Operating expenses 3,650 Depreciation (based on 20% business use) 6,635 If required, round your final answer to the nearest dollar. a. What is Cindy's office in the home deduction based on the regular method? 9,701 V Feedback V Check My Work Employees and self-employed individuals are not allowed a deduction for office in the home expenses unless a portion of the r used exclusively on a regular basis under certain circumstances. b. What is Cindy's office in the home deduction based on the simplified method? %$4 1,950 X
Cindy, who is self-employed, maintains an office in her home that comprises 20% (390 square feet) of total floor space. Gross income for her business is $47,900, and her residence expenses are as follows: Real property taxes $4,380 Interest on mortgage 7,300 Operating expenses 3,650 Depreciation (based on 20% business use) 6,635 If required, round your final answer to the nearest dollar. a. What is Cindy's office in the home deduction based on the regular method? 9,701 V Feedback V Check My Work Employees and self-employed individuals are not allowed a deduction for office in the home expenses unless a portion of the r used exclusively on a regular basis under certain circumstances. b. What is Cindy's office in the home deduction based on the simplified method? %$4 1,950 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please correct my mistake and show me where i went wrong
Transcribed Image Text:Exercise 9-20 (Algorithmic) (LO. 5)
Cindy, who is self-employed, maintains an office in her home that comprises 20% (390 square feet) of total floor space. Gross
income for her business is $47,900, and her residence expenses are as follows:
Real property taxes
$4,380
Interest on mortgage
7,300
Operating expenses
3,650
Depreciation (based on 20% business use)
6,635
If required, round your final answer to the nearest dollar.
a. What is Cindy's office in the home deduction based on the regular method?
9,701
Feedback
V Check My Work
Employees and self-employed individuals are not allowed a deduction for office in the home expenses unless a portion of the re
used exclusively on a regular basis under certain circumstances.
b. What is Cindy's office in the home deduction based on the simplified method?
$
1,950 x
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