Frank Is a Self-Employed Architect Who Maintains a Qualifying Office

question 30

Multiple Choice

Frank is a self-employed architect who maintains a qualifying office in his home. Frank has $80,000 gross income from his practice and incurs $72,000 in salaries, supplies, computer services, etc. Frank's mortgage interest and real estate taxes allocable to the office total $3,000. Other expenses total $9,000 and consist of depreciation, utilities, insurance, and maintenance. Frank's total office in home deductions are

• A)$3,000
• B)$5,000
• C)$8,000
• D)$9,000
• E)$12,000

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Definitions:

Significance

The quality of being worthy of attention; importance.

Goal

A desired result or outcome that an individual or group aims to achieve through concerted effort.

Ambiguous

Characterized by having more than one possible interpretation, meaning, or outcome, often leading to vagueness or confusion.

Life as a Mission

The concept that one's life has a specific purpose or mission, guiding actions and decisions towards fulfilling that purpose.