Mark is a self-employed consultant who uses 10% of his residence as an office. The office is used exclusively for business and is frequented by customers on a regular basis. In 2019, Mark's net income from the consulting business (other than his home office expenses) amounts to $40,000. He also incurs $1,400 of expenses directly related to the office (e.g., painting, new window blinds). Mark incurs the following expenses in 2019 related to his residence: Real estate taxes Mortgage interest Insurance Depreciation Repairs and utilities $2,000 5,000 500 . 3,500 1,000 1. What is Mark's net income from the consulting business after consideration of his home office deduction? 2. How much of these expenses are deductible from AGI as itemized deductions