office in their home

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office in their home

by sanju09 » Fri May 14, 2010 1:12 am
Taxpayers with an office in their home may deduct a percentage of their home-related expenses. This percentage is based on the ration of the office's area to the area of the home. A taxpayer with a 2200-square foot home maintains a 20-foot by 16-foot office. If the yearly electricity bills for the home come to $4800, nearly how much of this is deductible?
(A) $500
(B) $600
(C) $700
(D) $800
(E) $1000
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by gmatmachoman » Fri May 14, 2010 12:12 pm
ratio comes to be 14-15%.

from the options 14-15%( 4800) =700 odd!

Pick C