Colin, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the homes square footage. This year, Colin incurred the following expenses in connection with his home:

Home mortgage interest	$	13,880
Property tax on residence		3,100
Homeowners insurance		2,280
Utilities		3,000
Furnace repairs		390

Colin purchased the home in 2000 for $242,000. For MACRS depreciation purposes, he allocated $191,100 to the building and $50,900 to the land. Use Table 7.4.

1. If Colins gross business income exceeded his operating expenses by $84,000, compute his net profit for the year.
2. If Colins gross business income exceeded his operating expenses by $2,700, compute his net profit for the year.

Check my work 1 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: 2.85 points Home mortgage interest Property tax on residence Homeowner's insurance $13,880 3,100 Skipped 2,280 Utilities 3,000 Furnace repairs 390 eBook Print Colin purchased the home in 20o0 for $242,000. For MACRS depreciation purposes, he allocated $191,1o0 to the building and $50,900 to the land. Use Table 7.4. References a. If Colin's gross business income exceeded his operating expenses by $84,000, compute his net profit for the year. b. If Colin's gross business income exceeded his operating expenses by $2,700, 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 $84,000, compute his r your intermediate computations to the nearest whole dollar value.) Net profit Required B Required A If Colin's gross business income exceeded his operating expenses by $2,700, compute his ne Net profit Required A Required B Check my work 1 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: 2.85 points Home mortgage interest Property tax on residence Homeowner's insurance $13,880 3,100 Skipped 2,280 Utilities 3,000 Furnace repairs 390 eBook Print Colin purchased the home in 20o0 for $242,000. For MACRS depreciation purposes, he allocated $191,1o0 to the building and $50,900 to the land. Use Table 7.4. References a. If Colin's gross business income exceeded his operating expenses by $84,000, compute his net profit for the year. b. If Colin's gross business income exceeded his operating expenses by $2,700, 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 $84,000, compute his r your intermediate computations to the nearest whole dollar value.) Net profit Required B Required A If Colin's gross business income exceeded his operating expenses by $2,700, compute his ne Net profit Required A Required B