Business
Business, 21.12.2019 03:31, kimloveswim

Brooke owns a sole proprietorship in which she works as a management consultant. she maintains an office in her home where she meets with clients, prepares bills, and performs other work-related tasks. the home office is 300 square feet and the entire house is 4,500 square feet. brooke incurred the following home-related expenses during the year. unless indicated otherwise, assume brooke uses the actual expense method to compute home office expenses.
real property taxes $ 3,600
interest on home mortgage 14,000
operating expenses of home 5,000
depreciation 12,000
repairs to home theater room 1,000
assume brook's consulting business generated $50,000 in gross income for the current year.
a. what is the brooke's home office deduction for the current year?
b. what is brooke's agi for the year?

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