BUSA427_Chapter8.docx - Chapter 8 Ch 8 Question 26 Tom and...

Chapter 8
Ch. 8: Question 26
Tom and Shannon’s medical expense deduction for the year is $4,768. I found this by
calculating the following:
Hospital costs $3,200
Doctor’s bills 4,200 ($1,600 + $2,600)
Medicine and drugs 1,800 ($ 800 + $1,000)
Hospitalization insurance premiums 4,000
Cosmetic surgery 0
Mileage 68 (400 miles * $0.17)
Total medical expenses $13,268
Less: 10% AGI 8,500 ($85,000 * 10%)
Medical Deduction $4,768
Ch. 8: Question 40
Mark can reduce $18,000 as contributions if he does not elect to reduce the fair market