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.

Real property taxes	$	1,680
Interest on home mortgage		5,220
Operating expenses of home		840
Depreciation		1,648

Also, assume that, not counting the sole proprietorship, Ritas AGI is $61,600.

Assume Ritas consulting business generated $15,400 in gross income. (Leave no answer blank. Enter zero if applicable.)

Problem 14-64 Part b

b. What would Ritas 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.)