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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
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 255 of the 1,700 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. Xu's apartment rent was $50,000. She paid $5,400 to a housekeeping service that cleaned the entire apartment once a week and $2,200 for renter's insurance on the apartment furnishings. Required: a. Compute Ms. Xu's home office deduction assuming that her net profit before the deduction was $320,000. b. Compute Ms. Xu's home office deduction assuming that her net profit before the deduction was $4,200. Complete this question by entering your answers in the tabs below. Required A Required B Compute Ms. Xu's home office deduction assuming that her net profit before the deduction was $320,000. Home office deduction -
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