Problem 9-36 (Algorithmic) (LO. 5) Melanie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2024 are as follows: Real property taxes $6,000 Interest on home mortgage 7,200 Operating expenses of home 1,500 Melanie's residence cost $380,500 (excluding land) and has living space of 2,000 square feet, of which 34% (680 square feet) is devoted to business. The office was placed in service in February 2023, and under the Regular Method, Melanie had an unused office in the home deduction of $1,950 for 2023. Assume there is sufficient net income from her consulting practice. Click here to access the depreciation table to use for this problem. Round your final answer to nearest dollar. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? b. What is Melanie's office in the home deduction under the Simplified Method? Exhibit 8.5 MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention For Property Placed in Service after December 31, 1986 Other Recovery Years Last Recovery Year MACRS Class % First Recovery Year Years 0% Year 3-year 16.67 2-3 33.33 4 16.67 5-year 10.00 2-5 20.00 6 10.00 7-year 7.14 2-7 14.29 8 7.14 10-year 5.00 2-10 10.00 11 5.00 15-year 3.33 2-15 6.67 16 3.33 20-year 2.50 2-20 5.00 21 2.50 Note: The last two rows of this table are used for qualified improvement property (15-year normal MACRS; 20-year ADS).Exhibit 8.6 Alternative Minimum Tax: 150% Declining-Balance Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table*) Recovery 3-Year 5-Year 7-Year 9.5-Year 10-Year 12-Year Year 150% 150% 150% 150% 150% 150% 25.00 15.00 10.71 7.89 7.50 6.25 37.50 25.50 19.13 14.54 13.88 11.72 25.00*# 17.85 15.03 12.25 11.79 10.25 12.50 16.66** 12.25** 10.31 10.02 8.97 16.66 12.25 9.17** 8.74*# 7.85 8.33 12.25 9.17 8.74 7.33** WN = OO Va VA WN- 12.25 9.17 8.74 7.33 6.13 9.17 8.74 7.33 9.17 8.74 7.33 9.16 8.74 7.33 4.37 7.32 7.33 3.66Exhibit 8.7 ADS Straight-Line for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table) . Recovery Year 3-Year 5-Year 7-Year 10-Year 12-Year 16.67 10.00 7.14 5.00 4.17 2 33.33 20.00 14.29 10.00 8.33 w 33.33 20.00 14.29 10.00 8.33 4 16.67 20.00 14.29 10.00 8.33 5 20.00 14.29 10.00 8.33 10.00 14.29 10.00 8.33 14.29 10.00 8.34 8 7.14 10.00 8.33 10. 8.34