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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 $6,425. 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 $ 1,765
Interest on home mortgage 5,375
Operating expenses of home 525
Depreciation 1,820

Also, assume that not counting the sole proprietorship, Ritas AGI is $62,750. Assume Ritas consulting business generated $13,935 in gross income for the current year. Further, assume Rita uses the actual expense method for computing her home office expense deduction.

a. What is Ritas home office deduction for the current year?

b. What is Ritas AGI for the year?

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