Cindy maintains an office in her home that comprises 8% (200 square feet) of total floor space. Gross income for her business is $42,000, and her residence expenses are as follows:
Real property taxes............................................$2,400
Interest on mortgage............................................4,000
Operating expenses.............................................2,200
Depreciation (based on 8% business use)......................450
What is Cindy's office in the home deduction based on:
a. The regular method?
b. The simplified method?