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Bobby Is an Accountant Who Uses a Portion of His

question 19

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Bobby is an accountant who uses a portion of his home as his office. His home is 2,500 square feet and his office space occupies 1,500 square feet. Rent expense is $18,000 a year; utilities expense is $2,000 a year; and maintenance expense is $3,000 a year. What is the total amount of these expenses that can be allocated to his home office?

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Definitions:

Binding

Creating a legal obligation that is enforceable by law.

Conditions

Specific requirements, stipulations, or circumstances that must be met within an agreement or situation.

Trademark

A form of protection for intellectual property provided to the owner of a brand name or symbol.

Registered

Denotes entities or individuals that have formally recorded their details with a relevant authority or organization.

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