Blake operated as a sole proprietor, reported on Schedule c (Form 1040). He used 350 square feet of his 2100-square-foot rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses tor his financial planning business: Gross receipts: $36,960 .

Expenses: . Advertising: $80 . Business insurance: $685 ,, Bu8iness license: $100 . Comprehonsive health insurance (entire year): $7,788 . Office supplies: $76 " Postage: $38 . Rent (entire year): $14,400 " Rente/s insurance (entire year): S1,055 " Second phone line, exclusively for business: $103 . Tax preparation (allocated to business): $350 . Utilities (entire year): $2,281

Blake closed his business on April 1, 2018. He had no carryover losses and all assets were fully depreciated. If Blake elects to use actual office-in-home {OlH) expenses, what is the amount of his deduction?

A. $648; B. $739; C. $2,576; D. $2,957