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:

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, such as grains, gold, oil, and natural gas.

American West

A region of the United States that has been defined in various ways, often characterized by its history of westward expansion, frontier life, and significant cultural and geographical diversity.

Cities

Cities are large human settlements that are significant centers of population, culture, commerce, and political activities.

Indian Boarding Houses

Institutions established primarily in the United States during the 19th and early 20th centuries designed to assimilate Native American children into Euro-American culture.