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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

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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 $5,760. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. $1,680 5,220 Real property taxes Interest on home mortgage Operating expenses of home Depreciation 340 1.648 Also, assume that, not counting the sole proprietorship, Rita's AG is $61,600. Assume Rita's consulting business generated $15,400 in gross income. (Leave no answer blank. Enter zero if applicable.) b. What would Rita's home office deduction be if her business generated $10,400 of gross income instead of $15,400? (Answer for both the actual expense method and the simplified method.) Actual expense method Simplified method

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