Charles Is a Self- Employed CPA Who Maintains a Qualifying

question 1141

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

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Definitions:

Mnemonic Device

A technique used to improve memory by making information easier to remember, often through the use of patterns, acronyms, or vivid imagery.

Loss of Memory

Refers to the inability to remember information or events that were previously accessible.

Sensation Loss

The reduction or absence of sensory perception in one or more of the senses, such as touch, sight, hearing, taste, or smell.

Declarative Memories

Recollections that are available for conscious retrieval, including information and occurrences.