29. An aggressive young attorney is an employee of a small law firm that provides him with an adequate office. He uses the den in his home to prepare legal briefs and review legal documents related to his employment. Assuming the attorney lives near the firms office and he has easy access to the office at all times, which of the following statements most accurately describes the de-ductibility of the home office expenses incurred by the attorney? a. If the den is used exclusively for business purposes, the expenses are deductible. b. If the den is used exclusively for business purposes on a regular basis, the expenses are deductible. c. If the den is used exclusively for business purposes on a regular basis to work for and see clients, the expenses are deductible. d. In this situation the expenses are not deductible. e. The home office deduction was completely eliminated as a result of the Tax Reform Act of 1976.

30. K exclusively uses a portion of his bedroom as a place to manage his few investments. He charts his stocks daily. Costs allowable to the home office are $1,000. Gross income from his investments is $800, while his AGI, including the investment income, is $30,000. The amount K may deduct from his AGI is a. $0 b. $200 for AGI c. $400 for AGI d. $800 from AGI e. $1,000 from AGI

31. J.B., a self-employed taxpayer, acquired a car this year and uses the standard mileage method to compute her deduction for automobile expenses. During the year, J.B. drove 50,000 miles: 40,000 for business and 10,000 for personal purposes. Other expenses related to the car that she has brought to her tax advisors attention include insurance of $400, parking on business calls of $50, and interest on debt incurred to purchase the car of $1,000. What is J.B.s deduction for automobile expenses (assume the mileage rate is .50 cents per mile for all miles? a. $20,050 b. $22,250 c. $23,250 d. $21,160 e. Some other amount

32. R, a museum director, timed a business trip to Egypt to coincide with a trip to the Pyramids organized by her colleges Alumni Association. She spent 14 days on business and seven days sight-seeing at the Pyramids. Air fare was $1,500, and lodging plus 50% of Rs meal costs totaled $75 a day. She can deduct a. $1,000 b. $1,050 c. $2,050 d. $3,050