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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

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 $5,960. 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 $ 1,780 Interest on home mortgage 5,370 Operating expenses of home 890 Depreciation 1,708 Also, assume that, not counting the sole proprietorship, Ritas AGI is $63,600. Assume Ritas consulting business generated $15,900 in gross income. (Leave no answer blank. Enter zero if applicable.)

. What would Ritas home office deduction be if her business generated $10,900 of gross income instead of $15,900? (Answer for both the actual expense method and the simplified method.)

actual method = ????

simplified method = $1500

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