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Jake runs a business out of his home. He uses 500 square feet of his...

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Accounting

Jake runs a business out of his home. He uses 500 square feet of his home exclusively for the business. His home is 2,000 square feet in total. Jake had $28,200 of business revenue and $22,500 of business expenses from his home-based business. The following expenses relate to his home: Mortgage interest $ 11,770 Real estate taxes 1,500 Utilities 2,300 Insurance 550 Repairs 2,260 Depreciation (on business-use portion of home) 1,205 What is Jakes net income from his business? What amount of expenses is carried over to the following year, if any

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