Susanne Denholm is employed as a provincial payroll tax auditor and is required by contract to maintain an office in her home. Susanne works at home most of the time and has been provided with a laptop computer and a fireproof audit bag for her files. She has not been provided with any reimbursement or allowance in connection with her home office, which occupies 10% of the square footage of her home. She incurred the following costs to maintain her entire home this year:

Telephone (general line-no long distance charges) * $ 600

Property taxes 4,000

Heat, hydro, & maintenance 5,000

Mortgage interest 24,000

* Susanne estimates that she used her telephone 50% for employment purposes during the year.

What is the maximum amount that Susanne can claim for the costs she has incurred in respect of her home office?

$3,800

$1,100

$500

$1,400