1. Mr. C, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the home's square footage. This year, Mr. C incurred the following expenses in connection with his home: $12,980 2,200 Home mortgage interest Property tax on residence Homeowner's insurance Utilities Furnace repairs 1,475 2,100 300 Mr. C purchased the home in 1998 for $225,000. For MACRS depreciation purposes, he allocated $185,000 to the building and $40,000 to the land. Compute his home office deduction for the year