# 51. PR.03-22Problem 3-22Office in the Home (LO 3.11)Pete qualifies for a home office deduction. The amount of space devoted to business use is 300 square feet of the total1,200 square feet in his apartment. Pete's total rent for the year is \$9,600, and he pays utilities (other than telephone)of \$2,500 for the year.Calculate Pete's deduction for home office expenses before the gross income limitation.Rent\$UtilitiesTotal home office expenses \$52. PR.03-23Problem 3-23Office in the Home (LO 3.11)Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet of the total 2,000quare feet of her home. Randi's mortgage interest and property taxes in total are \$1,600. Other deductions properlyallocated to the home office total \$300. In addition, Randi purchases and uses business supplies costing \$200 during theyear. Assume Randi earns income of \$3,400 for the year before deducting any home office or supplies deduction.Assuming Randi uses the simplified method, calculate the largest deduction Randi can take for her home office (ignoreself-employment taxes).https://v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentld=155962325/27nttps://v2.cengagenow.co.

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Home office deductions are available on proportion to the part of the home used as office. Pete uses 300 sq foot of tot...

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