Betty, a salesperson, is an employee with $52,000 AGI who maintains a home office for the convenience of her employer, Smart Systems. The office takes up 5% of Bettys home and is used exclusively for her job. Smart Systems reimburses all of Bettys direct costs of maintaining the home office. Betty also has the following expenses associated with her home:

Expense	Amount
Real property taxes on residence	$3,500
Interest expense on residence	$5,000
Operating expenses on residence	$1,800
Depreciation on residence (based on 5% home office use)	$ 150

Considering these facts, how much may Betty deduct from AGI on her tax return, assuming she elects to itemize deductions, as a result of her home office?

A.$0

B.$665

C.$9,410

D.$10,450

MetaCorp is subject to the Uniform Capitalization Rules. Identify which of the following costs associated with MetaCorps products must therefore be capitalized, rather than expensed on Schedule C:

I. Handling costs

II. Design costs

III. Bidding costs

A.I, II and III

B.II and III only

C.II only

D.I only