Jade has a qualified home office which takes up 400 square feet of her 1,200 square foot home. The allowable depreciation from the business use of the home is $1,000. Also, Jade paid $1,000 of total interest for the home mortgage in 2020. To get the most beneficial return, which method should be used for determining the home office deduction and how much is the deduction?

Actual; $1,333.

Simplified; $1,500.

Simplified; $2,000.

Simplified; $2,500.