Problem 14-64 (LO 14-6) (Algo) [The following information applies to the questions displayed below.) 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 $5,920. 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 $ 1,760 Interest on home mortgage 5,340 Operating expenses of home 880 Depreciation 1,696 Also, assume that not counting the sole proprietorship, Rita's AGI is $63,200. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Assume Rita's consulting business generated $15,800 in gross income (Leave no answer blank. Enter zero if applicable.) Problem 14-64 Part b (Algo) b. What would Rita's home office deduction be if her business generated $10,800 of gross Income instead of $15,800? (Answer for both the actual expense method and the simplified method.) Answer is complete but not entirely correct. Actual expense method 7,100 Simplified method 8,600