AP 6-8 (Work Space in Home Costs and CCA) Billy Jow is a music instructor at a local high school in your area. He is employed by the school board and earns approximately $70,000 annually. To supplement his income, Billy started to teach music on April 1, 2022, to a number of children in the neighbourhood in the evenings and on weekends. Billy comes to you for advice on how he should report this supplementary teaching income and what expenses are deductible. Billy does not mind paying his fair share of income taxes, but he wants to pay no more than required. From discussions with friends, he understands that he may be entitled to claim a portion of the costs of his home. Since he was not using the den in his home, he decided to use it for this supplementary teaching. The livable space of his home is approximately 2,000 square feet in size. The den together with common areas represents approximately 200 square feet. From April 1, 2022, to December 31, 2022, Billy earned $5,700 in music fees. He has chosen a fiscal period ending December 31 and has incurred the following expenses since April 1: Assume that the music books will have to be replaced every year. Billy is currently using the software program on an old computer that he uses mainly to watch YouTube videos. He is considering the purchase of a new computer solely for teaching purposes if the teaching generates enough income. Required: A. Briefly explain the conditions under which expenses for a work space in the home are deductible. B. Based on the information given, compute Billy's minimum 2022 business income or loss. C. Briefly describe any issues that should be discussed with Billy concerning the work space in his home expenses and other business expenses and costs