Charlotte owns a custom publishing business. She uses 500 square feet of her home (2,000 square feet) as an office and for storage. All her business has come from telemarketing (telephone sales), direct mailings, or referrals. In her first year of operation, she has revenues of $37,000, cost of goods sold of $25,900, and other business expenses of $8,100. The total expenses related to her home are:

Home mortgage interest .... $6,400

Real property taxes ...... 2,100

Insurance .......... 560

Utilities ............ 800

Repairs and maintenance ..... 600

House cleaning ........ 960

Depreciation (unallocated) .... 5,000

What amount can Charlotte deduct for her home office?