Suzanne Lee is employed as a provincial payroll tax auditor and is required by contract...

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Accounting

Suzanne Lee is employed as a provincial payroll tax auditor and is required by contract to maintain an office in her home. Suzanne works at home most of the time and has been provided with a laptop computer and a fireproof audit bag for her files. She has not been provided with any reimbursement or allowance in connection with her home-office, which occupies 10% of the square footage of her home. She incurred the following cost to maintain her entire home this year:
Telephone (general line).................$600*
House Insurance..........................$2,000
Property taxes.............................$4,000
Heat, hydro & maintenance........$5,000
Mortgage interest......................$24,000
* Suzanne estimates that she used her telephone 50% for employment purposes during the year.
What is the maximum amount that Suzanne can claim for the costs she has incurred in respect of her home office?
(WK)
Select one:
a.
$500
b.
$1,100
c.
$3,800
d.
$1,400

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