Aaron James Has a Qualifying Home Office A) $5,240
B) $4,140
C) $4,260
D) $21,800

question 49

Multiple Choice

Aaron James has a qualifying home office. The office is 500 square feet and the entire house is 2,500 square feet. Use the following information to determine his allowable home office deduction: $$\begin{array} { | l | r | } \hline \begin{array} { l } \text { Net income from self-employment before } \\\text { home office deduction }\end{array} & \$ 150,000 \\\hline \text { Expenses from home } ( 100 \% ) &\\\hline \text { Home mortgage interest } & 12,000 \\\hline \text { Property taxes } & 4,000 \\\hline \text { Homeowner's insurance } & 2,500 \\\hline \text { Utilities } & 2,200\\\hline \text { Depreciation on office portion of home } & 1,100 \\\hline\end{array}$$

• A) $5,240
• B) $4,140
• C) $4,260
• D) $21,800

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Definitions:

Influenced

Refers to being affected or altered by an external factor or variable.

Sample Regression Line

This is the line obtained from the regression analysis of sample data, used to predict the dependent variable values from the independent variable.

Dependent Variable

A variable in an experiment or model that is expected to change in response to changes in the independent variable.

Independent Variables

Variables in an experiment or model that are manipulated or varied by the researcher to determine their effect on the dependent variable.