P's building, which is used in his business, is destroyed in a fire in the current year. P's adjusted basis in the building is $50,000 and its FMV is $103,000. P files an insurance claim and is reimbursed $100,000. In the same year, P invests $78,000 of the insurance proceeds in another business building. If Pelects to defer the gain, there will still be a recognized gain of $50,000 $0 $28,000 $22,000 David has a qualifying home office. The office is 600 square feet and the entire house is 3,000 square feet. Use the following information to determine his allowable home office deduction: Net income from self-employment before home office deduction $ 150,000 Expenses from home (100%): Home mortgage interest 12,000 Property taxes 4,000 Homeowner's insurance 2,500 Utilities 2,200 Depreciation on office portion of home 1,100