**Required Information***[The following information applies to the questions displayed below.]*Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,600. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses:- **Real property taxes**: $1,600- **Interest on home mortgage**: $5,100- **Operating expenses of home**: $8,000- **Depreciation**: $1,600Also, assume that, not counting the sole proprietorship, Rita's AGI is $60,000. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home.Assume Rita’s consulting business generated $15,000 in gross income.**Note**: Leave no answer blank. Enter zero if applicable.**Question**a. What is Rita's home office deduction for the current year?- **Home office deduction**: [Input Field]

Rita owns a sole proprietorship in which she works as a management consultant. She maintains square feet) where she meets with clients, prepares bills, and performs other work-related tasks. other than home office expenses, total $5,600. The following home-related expenses have beer office under the actual expense method for calculating home office expenses.

Rita owns a sole proprietorship in which she works as a management consultant. She maintains square feet) where she meets with clients, prepares bills, and performs other work-related tasks. other than home office expenses, total $5,600. The following home-related expenses have beer office under the actual expense method for calculating home office expenses.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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