Case Study The Business of Taxes Camille operates a child care service from her home. Her gross business income for 2018 amounted to $42350. Her tax-deductible business expenses consisted of the following: Advertising $1700 Dues, memberships, subscriptions 520 Motor vehicle expenses 1115 Supplies 582 Meals and entertainment 495 Other expenses 437 Camille can also deduct home expenses, such as utilities, property taxes, house insurance, mortgage interest, and maintenance for the business use of a workspace in her home. The amount that may be deducted is a proportion of the total annual home expenses allocated to the workspace on a reasonable basis, such as area or number of rooms. Camille's eligible home expenses for the year were: The house covers 345 square metres and consists of eight rooms. Camille uses one room with an area of 45 square metres as her business office. 1. What portion of her eligible home expenses may Camille claim as tax-deductible expenses if the expenses are allocated on the basis of a. area? b. number of rooms? 2. What is her net business income if Camille allocates home expenses on the basis of area? 3. For most individuals, basic federal income tax equals the federal tax calculated according to Table 3.3, less non-refundable tax credits. What is Camille's basic federal income tax if she reports a nonrefundable tax credit of $12138? NOTE: Federal tax is reduced by 15% of total non-refundable tax credits. 4. What percent of Camille's business income is basic federal income