Pathp QUESTION 7 1. Lyndsay is a ballet teacher and she gives ballet lessons in her home. She uses the basement in her home exclusively for her balet business. The basementis 300 sq. feet and her entire home isi soo sq.feet. Lyndsay has the following items of income and expense from her business Lyndsay incurs no other state and local income taxes and she itemizes her deductions. Income - $75,000 Real Property taxes $10,000 Mortgage interest $ 35,000 Depreciation on house $8,000 Business Expenses directly attributable to business $60,000 Operating expenses of house 56,000 How much income or loss will Lyndsay recognize for tax purposes? Will any amount be carried over to future years? Should Lyndsay use the simplified method for computing the income for her business? If so, why? If not, why not? Arial 3 (12pt) TEEB. Save Ales Cose w and Submit to save and submit. Click Save All Answers to save all answers MacBook Pro