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Problem $14-64($LO $14-6)($Algo$)$

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Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home $(500$ square feet$)$ where she meets with clients, prepares bills, and performs other work$-$related tasks. Her business expenses, other than home office expenses, total $$6,080.$ The following home$-$related expenses have been allocated to her home office under the actual expense method for calculating home office expenses.

Real property taxes $ $1,840$

Interest on home mortgage $5,460$

Operating expenses of home $920$

Depreciation $1,744$

Also, assume that, not counting the sole proprietorship, Rita's AGI is $$64,800.$ Rita itemizes deductions, and her itemized deduction for non$-$home business taxes is less than $$10,000$ by more than the real property taxes allocated to business use of the home.

Assume Rita's consulting business generated $$16,200$ in gross income.

Note: Leave no answer blank. Enter zero if applicable.

A$.$ What is Rita's home office deduction for the current year?

B$.$ What would Rita's home office deduction be if her business generated $$11,200$ of gross income instead of $$16,200?($Answer for both the actual expense method and the simplified method.$)$

C$.$ Given the original facts, what is Rita's AGI for the year?