Cindy, who is self-employed, maintains an office in her home. Gross income for her business is $50,000, and her residence expenses are as follows:

Real property taxes	$4,000
Interest on mortgage	6,000
Operating expenses	3,000
Depreciation (business use portion)	2,000

Cindy's residence has living space of 2,000 square feet, of which 20% (400 square feet) is devoted to business.

a) What is Cindy's office in the home deduction based on the regular method?

b) What is Cindy's office in the home deduction based on the simplified method?

Answer (show details for credits):