Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home office and properly allocates the following expenses to her office:

Line Item DescriptionAmountDepreciation$$1,500$Utilities$500$Real estate taxes$325$Mortgage interest $(100-$percent deductible$)500$

Question Content Area

a$.$Assume that Cindy earns income of $$4,400$ from her business for the year before deducting home office expenses. She has no other expenses associated with the business.

Calculate Cindy's deduction for home office expenses.

b$.$Assume that Cindy earns income of $$2,600$ from her business during the year before deducting home office expenses.

Calculate Cindy's deduction for home office expenses.