Ipod Touch 5th Gen Black Screen - device inop

My daughter has an Ipod Touch 5th generation she received fro christmas in 2013. Yesterday she came home from school to find the screen black and the device non-responsive. Pressing or hold the power or volume buttons gives us no result. One thing we noticed right away was that the home button appeared not to work. When pressing down and releasing there is no click or apparent movement in the button. I do not know if this is normal, but from my searching it appears not to be. When attached to the computer, Itunes does not recognize the device. It sees no device at all. This Ipod stays in an Otterbox Defender case at all times.

My solution attempts:

1) Charge Ipod to ensure battery is not dead.

2) Attempting to clean the home button with isopropyl alchol. The ipod was held in an upright position the entire time to facilitate drainage and prevent the alcohol from getting under the screen.

3) Attach ipod to computer to see if Itunes found device.

4) Hard reset by holding power button and home button for over 10 seconds.

Questions:

1) Is home button supposed to click or move up and down?

2) Is the black screen/non-response related?

3) If 2 is correct,how do I go about fixing said button?

4) What is the warranty on these? I cannot give you more information other that Dec 2013 it was received by daughter and model number on back is A1421.

I have no idea what version of OS it has on it.