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:

Average Cost

The aggregate expense of manufacturing, when divided by the total goods manufactured, denotes the unit cost.

Communication

The exchange of information or messages between individuals through various channels and mediums.

Inspirational Workplace

An inspirational workplace is one that motivates individuals to achieve their best and fosters positive attitudes and creativity.

Conflicts

Situations where interests, needs, goals, or values of involved parties interfere with one another.