Anna Is a Self-Employed Newspaper Columnist Who Does Her Work

question 24

Essay

Anna is a self-employed newspaper columnist who does her work exclusively from a home office. Anna had a bad year and her taxable income from her business is only $2,000 before the home office expenses this year. Her office takes up 250 square feet of her 1,000 square feet apartment. The total expenses for her apartment are $8,000 for rent, $1,000 for utilities, $200 of renter's insurance, and $800 for pest control and other maintenance. What is Anna's home office deduction? Please show your calculations.

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Definitions:

Exchange Rate

The price of one country's currency in terms of another currency.

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specific time.

Strike Price

A term synonymously used with Exercise Price, indicating the fixed price at which an option holder can buy or sell the underlying asset.

Contract Maturity

The predetermined date on which a financial contract, such as a bond or a futures contract, expires or is settled.