Jim Operates a Business Out of His Home

Multiple Choice

Jim operates a business out of his home. One room in his home is used for business and qualifies as a home office. Which of the following allocable expenditures can Jim use in computing his home office expense deduction?
I.Jim pays his housekeeper $25 a week to sweep, dust and straighten-up his office.
II.Jim's fire and casualty insurance premiums on his home are $800.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.