Colin, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the home's square footage. This year, Colin incurred the following expenses in connection with his home: Use Table 7-3 and Table 7-4. Home mortgage interest Property tax on residence Homeowner's insurance Utilities Furnace repairs $12,980 2,200 1,475 2,100 300 Colin purchased the home in 2000 for $225,000. For MACRS depreciation purposes, he allocated $185,000 to the building and $40,000 to the land. Required: a. If Colin's gross business income exceeded his operating expenses by $75,000, compute his net profit for the year. b. If Colin's gross business income exceeded his operating expenses by $1,800, compute his net profit for the year. Complete this question by entering your answers in the tabs below. Required A Required B If Colin's gross business income exceeded his operating expenses by $75,000, compute his net profit for the year. (Round your intermediate computations to the nearest whole dollar value.) Net profit Colin, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the home's square footage. This year, Colin incurred the following expenses in connection with his home: Use Table 7-3 and Table 7-4. Home mortgage interest Property tax on residence Homeowner's insurance Utilities Furnace repairs $12,980 2,200 1,475 2,100 300 Colin purchased the home in 2000 for $225,000. For MACRS depreciation purposes, he allocated $185,000 to the building and $40,000 to the land. Required: a. If Colin's gross business income exceeded his operating expenses by $75,000, compute his net profit for the year. b. If Colin's gross business income exceeded his operating expenses by $1,800, compute his net profit for the year. Complete this question by entering your answers in the tabs below. Required A Required B If Colin's gross business income exceeded his operating expenses by $1,800, compute his net profit for the year. Net profit