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Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home ( 5 0 0 square

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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 $5,880. The following home-related expenses have been allocated to her home
office under the actual expense method for calculating home office expenses.
Also, assume that, not counting the sole proprietorship, Rita's AGI is $62,800. 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 $15,700 in gross income.
Note: Leave no answer blank. Enter zero if applicable.
b. What would Rita's home office deduction be if her business generated $10,700 of gross income instead of $15,700?(Answer for
both the actual expense method and the simplified method.)
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