Chris Runs a Business Out of Her Home What Is Chris' Net Income from Her Business and the Square

Multiple Choice

Chris runs a business out of her home.She uses 500 square feet of her home exclusively for the business.Her home is 2500 square feet in total.Chris had $36,000 of business revenue and $32,000 of business expenses from her home business.The following expenses relate to her home: $\begin{array}{lr}\text { Mortgage interest } & \$ 12,400 \\\text { Real estate taxes } & 1,800 \\\text { Repairs } & 3,200 \\\text { Utilities } & 2,600 \\\text { Insurance } & 650 \\\text { Depreciation (on business use portion of home) } & 1,750\end{array}$ What is Chris' net income from her business and the amount of expenses carried over to the following year,if any?
Net income $\quad$$\quad$ Carryover
a. $0 $\quad$$\quad$$\quad$$\quad$ $1,880
b. $0 $\quad$$\quad$$\quad$$\quad$ $0
c. $4,000 $\quad$$\quad$$\quad$ $4,130
d. $36,000 $\quad$$\quad$$\quad$ $0

A) Option A
B) Option B
C) Option C
D) Option D