Antonio Capellini is a successful self-employed accountant. He meets all of his clients in his office in the basement of his home. The office is 800 square feet and the house is 3,000 square feet. Antonio incurred the following costs during the current year: 

Business liability insurance $ 400 

House insurance 880 

House utilities 2,600 

House repairs and maintenance 3,000 

Mortgage interest 5,700 

Property tax 1,600 

Office supplies 760 

Required: 

1. A) What is the amount of the expenses deductible from Antonio's business income? 
2. B) Antonio's family really did not prefer so many "strangers" coming into their basement at all hours. What is the amount of the home office expenses deductible from Antonio's business income if he also decided to rent an external office for meeting clients at a cost of $750 per month