Charles Is a Self-Employed CPA Who Maintains a Qualifying Office

question 67

Multiple Choice

Charles is a self-employed CPA who maintains a qualifying office in his home.Charles has $110,000 gross income from his practice and incurs $88,000 in salaries,supplies,computer services,etc.Charles's mortgage interest and real estate taxes allocable to the office total $10,000.Other expenses total $14,000 and consist of depreciation,utilities,insurance,and maintenance.What is Charles' total home office expense deduction?

• A)$10,000
• B)$14,000
• C)$22,000
• D)$24,000

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Definitions:

Experimental

Pertaining to or based on a methodical plan or procedure to establish cause and effect by testing hypotheses and controlling variables.

Correlational

Pertaining to a statistical relationship between two or more variables, indicating how one may predict the other without implying causation.

Overt Behavior

Actions or responses that are observable and measurable by others, as opposed to thoughts or feelings which are internal and subjective.

Daydreaming

A state of mind involving spontaneous and self-generated thoughts and imaginations, disconnected from immediate external tasks.