Max Phillip uses 10% of his home regularly and exclusively for business purposes. The space constitutes his principal place of business. Maxs net income from his business operation (before taking into account expenses of his home) is $800. He had the following total expenses on his home:

Property Taxes $2,500

Mortgage Interest 4,000

Insurance 600

Utilities 700

Depreciation 1,500

Calculate below, in the proper order, the expenses that Max would be able to deduct for his home office in the current year. SHOW WORK FOR PARTIAL CREDIT