FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 billis, and performs other work-related tasks. Her business
expenses, other than home office expenses, total $6.020. 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:
Interest on home mortgage
Operating expenses of hure
Depreciation
Also, assume that not counting the sole proprietorship. Rita's AGI is $64,200. 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 $16,050 in gross income.
Note: Leave no answer blank. Enter zero if applicable
Problem 14-64 Part a (Algo)
5 1,810
1415
905
1726
a. What is Rita's home office deduction for the current year?
Home office deduction
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Transcribed Image Text:Required Information 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 billis, and performs other work-related tasks. Her business expenses, other than home office expenses, total $6.020. 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: Interest on home mortgage Operating expenses of hure Depreciation Also, assume that not counting the sole proprietorship. Rita's AGI is $64,200. 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 $16,050 in gross income. Note: Leave no answer blank. Enter zero if applicable Problem 14-64 Part a (Algo) 5 1,810 1415 905 1726 a. What is Rita's home office deduction for the current year? Home office deduction
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