QUESTION 13 Nancy is employed by a large corporation as a sales representative. She is paid a salary of $70,000 in 2023. She is required to have a home office and she estimates that her work related use at 375 square feet of her 1,500 square foot house. Total expenses for 2023 were as follows: Mortgage payments (40% principal, 60% interest) Home owner's insurance Utilities Roof repair Municipal property tax $24,000 900 1,500 800 5,000 As Nancy's compensation does not include any commissions, she is unable to claim some of these expenses as an employment expense. If instead, her compensation of $70,000 was in the form of commissions, she would be able to claim extra employment expenses of: O $1,675. O $1,475. O $5,075. $3,600.
QUESTION 13 Nancy is employed by a large corporation as a sales representative. She is paid a salary of $70,000 in 2023. She is required to have a home office and she estimates that her work related use at 375 square feet of her 1,500 square foot house. Total expenses for 2023 were as follows: Mortgage payments (40% principal, 60% interest) Home owner's insurance Utilities Roof repair Municipal property tax $24,000 900 1,500 800 5,000 As Nancy's compensation does not include any commissions, she is unable to claim some of these expenses as an employment expense. If instead, her compensation of $70,000 was in the form of commissions, she would be able to claim extra employment expenses of: O $1,675. O $1,475. O $5,075. $3,600.
Chapter3: Income Sources
Section: Chapter Questions
Problem 84P
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Transcribed Image Text:QUESTION 13
Nancy is employed by a large corporation as a sales representative. She is paid a salary of $70,000 in 2023.
She is required to have a home office and she estimates that her work related use at 375 square feet of her
1,500 square foot house. Total expenses for 2023 were as follows:
Mortgage payments (40% principal, 60% interest)
Home owner's insurance
Utilities
Roof repair
Municipal property tax
$24,000
900
1,500
800
5,000
As Nancy's compensation does not include any commissions, she is unable to claim some of these expenses
as an employment expense. If instead, her compensation of $70,000 was in the form of commissions, she
would be able to claim extra employment expenses of:
$1,675.
O $1,475.
O $5,075.
O $3,600.
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