1. John represents several national casualty insurance companies on a contract basis. He operates this business on the cash basis. He is paid a retainer and receives additional compensation if the claims he processes for the year exceed a specified number. As an independent contractor, he is responsible for whatever expenses he incurs. John works out of an office near his home. The office is located at 1202 Motel Road. He shares Suite 326 with a financial consultant, and operating expenses are divided equally between them. The suite has a common waiting room with a receptionist furnished and paid by the landlord. John paid his one-half share of the 2014 expenses as detailed below

Office rent	$11,600
Utilities (includes telephone and fax)	4,300
Replacement of waiting room furniture on April 22	3,600
Renters' insurance (covers personal liability, casualty, theft)	1,400
Office expense (supplies, postage)	740
New Toshiba copier on February	7 300
Waiting room coffee service (catered)	280
Waiting room magazine subscriptions	90

For his own business use, John purchased a $2,100 laptop computer on June 17 and a $1,200 Nikon camera on February 5. Except for his vehicle (see item 2 below), John uses the 179 write-off option whenever possible. John has no expenditures for which he is required to file Form 1099s.