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samples Ch10 - Deductions and Losses: Certain Itemized...

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Deductions and Losses: Certain Itemized Deductions 10-1 CHAPTER 10 DEDUCTIONS AND LOSSES: CERTAIN ITEMIZED DEDUCTIONS EXAMINATION QUESTIONS 1. Jacob and Chloe are married and together have AGI of $30,000. They have two dependents and file a joint return. Each pays $1,200 for hospitalization insurance. During the year, they paid the following amounts for medical care: $7,000 in doctor and dentist bills and hospital expenses, and $1,700 for prescribed medicine and drugs. In December, they received an insurance reimbursement of $2,700 for hospitalization. Determine the deduction allowable for medical expenses paid during the year. a. $11,100. b. $9,150. c. $8,850. d. $6,150. e. None of the above. 2. Upon the recommendation of a physician, Joshua has a dust elimination system installed in his personal residence. He suffers from severe allergies. In connection with this system, Joshua incurs and pays the following amounts during the current year: Dust elimination system and cost of installation $7,000 Increase in utility bills due to the system 400 Cost of certified appraisal 500 The system has an estimated useful life of 5 years. The appraisal was to determine the value of Joshua's residence with and without the system. The appraisal states that the
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This note was uploaded on 03/05/2011 for the course ACCT 4494 taught by Professor Burks during the Spring '11 term at Troy.

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samples Ch10 - Deductions and Losses: Certain Itemized...

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