For several years, Blake owned and operated a financial planning business, BJS Financial, from his home. It is a sole proprietorship, reported on Schedule C (Form 1040). In April 2016, he won a $15,000,000 State Lottery and closed his business. On April 10, 2016, Blake sold all the items he had been depreciating for his home business. He used 350 square feet of his 2,100-square-foot rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his financial planning business: Gross receipts: $36,960 Expenses: Advertising: $80 Business insurance: $685 Business license: $100 Comprehensive health insurance (entire year): $7,788 Office supplies: $76 Postage $38 Rent (entire year): $14,400 Renter's insurance (entire year): $1,055 Second phone line, exclusively for business: $103 Tax preparation (allocated to business): $350 Utilities (entire year): $2,281 There was no carryover of unallowed expenses. There was no section 179 expense deduction taken for any of the assets that were sold April 10, 2016. Depreciation includes bonus depreciation, when avail- able. All assets were 100% business use: Item Date in Service Basis Prior Depreciation New computer June 15, 2013 $1,750 $623 New printer June 15, 2013 $350 $125 Used desk and chairs June 15, 2013 $1,200 $675 Blake disposed of his business assets in the following manner: Computer-sold for $220. Printer-junked at the hazardous waste center. Used desk and chairs-sold for $390. The cost of Blake's comprehensive health insurance policy was $649 monthly. If the office in home (OIH) simplified method is elected, what is the amount of Blake's OIH deduction ? $1,750 $1,500 $ 440 $375 What is the total amount of gain/loss that Blake recognizes from the disposition of his business assets? $118 $18 ($82) ($100) Question 72 of 75. If Blake elects to use the office in home (OIH) simplified method, what is the amount of his Schedule C net profit/loss? $34,650 $34,953 $35,018 $37,674