Sybil is a self-employed artist who uses 10% of her residence as a studio. The studio portion of her home is used exclusively for business and is frequented by customers on a regular basis. Sybil also uses her den as an office (10% of the total floor space of her home) to prepare bills and keep records. However, the den is also used by her children as a TV room. Sybil's net income from the sale of the artwork (other than her home office expenses) is $40,000 in the current year. She also incurs $1,400 of expenses directly related to the studio (painting of the studio, window blinds, etc.) Sybil incurs the following expenses in the current year related to her residence: Real estate taxes Mortgage interest Insurance Depreciation Repairs and utilities Total $2,000 5,000 500 3,500 1.000 12,000 How much of the above can Sybil deduct as home office expense