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Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients,

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Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work-related tasks. The home office is 300 square feet and the entire house is 4,500 square feet. Brooke incurred the following home-related expenses during the year. Unless indicated otherwise, assume Brooke uses the actual expense method to compute home office expenses. Real property taxes Interest on home mortgage Operating expenses of home Depreciation Repairs to home theater room $ 3,600 14,000 5,000 12,000 1,000 Required: a. What amount of each of these expenses is allocated to the home office? b. What are the total amounts of tier 1, tier 2, and tier 3 expenses, respectively, allocated to the home office? c. If Brooke reported $2,000 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction and how much of the home office expenses, if any, would she carry over to next year? Complete this question by entering your answers in the tabs below. Req a Reg b Reqc If Brooke reported $2,000 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction and how much of the home office expenses, if any, would she carry over to next year? Home office expense deduction Home office expense carried over 306

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