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Problem 1 0 - 0 2 ( Algo ) [ LO 1 0 - 1 ] Rhea Xu is a self - employed professional singer

Problem 10-02(Algo)[LO 10-1]
Rhea Xu is a self-employed professional singer. She resides in a rented apartment and uses one room exclusively as a business office. This room includes 270 of the 1,800 square feet of living space in the apartment. Ms. Xu performs in recording studios and concert halls, but she conducts all of the administrative duties with respect to the business in her home office. This year, Ms. Xus apartment rent was $51,000. She paid $5,500 to a housekeeping service that cleaned the entire apartment once a week and $2,300 for renters insurance on the apartment furnishings.
Required:
Compute Ms. Xus home office deduction assuming that her net profit before the deduction was $330,000.
Compute Ms. Xus home office deduction assuming that her net profit before the deduction was $4,300.

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