Jen feroly is employed as a provincial payroll tax auditor and is required by contract to maintain an office in her home. Jen works at home most of the time and has been provided with a laptop computer and a fireproof audit bag for her files. She has not been provided with any reimbursement or allowance in connection with her home office, which occupies 10% of the square footage of her home. She incurred the following costs to maintain her entire home this year:

Telephone (general line) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600*

House insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000

Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

Heat, hydro & maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000

Mortgage interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000

* jen estimates that she used her telephone 50% for employment purposes during the year.

What is the maximum amount that jen can claim for the costs she has incurred in respect of her home office?

Select one:

A. $500

B. $1,100

C. $1,400

D. $3,800