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 $5,640. 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 AG is $60,400. 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 $15,100 in gross income. Note: Leave no answer blank. Enter zero if applicable. Required: 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 $10,100 of gross income instead of $15,100 ? (Answer for both the actual expense method and the simplified method.) c. Given the original facts, what is Rita's AGI for the year? Javier and Anita Sanchez purchased a home on January 1, 2022, for $792,000 by paying $264,000 down and borrowing the remaining $528,000 with a 7 percent loan secured by the home. The loan requires interest-only payments for the first five years. The Sanchezes would itemize deductions even if they did not have any deductible interest. The Sanchezes' marginal tax rate is 32 percent. Required: a. What is the after-tax cost of the interest expense to the Sanchezes in 2022 ? Note: Round your intermediate calculations to the nearest whole dollar amount. b. Assume the original facts, except that the Sanchezes rent a home and pay $36,960 in rent during the year. What is the after-tax cost of their rental payments in 2022 ? c. Assuming the interest expense is their only itemized deduction for the year and that Javier and Anita file a joint return, have great eyesight, and are under 60 years of age, what is the after-tax cost of their 2022 interest expense? Note: Round your intermediate calculations and the final answer to the nearest whole dollar amount