Will utilizes a spare bedroom, exclusively as an office to conduct business, in his home that comprises 12% (350 square feet) of total floor space. Gross income from his business is $50,000, and net income after deducting all operating expenses unrelated to his home office is $30,000. Will's residence expenses are as follows: Real Estate Taxes: Interest on Mortgage: Utilities: Depreciation (Based on 12% business use): $4,000 $6,500 $1,800 $1,000 A.) (5 Points) What is Will's home office deduction using the regular / actual cost method?