Aaron, age 55, has an adjusted gross income in 2014 of $30,000. His expenses are as follows: Non-prescription medicine $100 Prescription medicine $500 Doctor visits $500 Weekly meal preparation for a diet plan $2,000 Removal of a benign facial mole $400 Contact lenses $500 Eyeglasses $200 Dental services $300 What is Aaron's itemized deduction for medical expenses? a. $2,000 b. $4,500 c. $1,500 d. $0 During 2015, John, a self-employed individual, paid the following amounts: Real estate tax on Michigan residence $3,800 State income tax 1,800 Real estate taxes on land in Puerto Rico (held as an investment) 1,100 Gift tax paid on gift to daughter 1,200 State sales taxes 1,750 State occupational license fee 300 Property tax on value of his automobile (used 100% for business) 500 What is the maximum amount John can claim as taxes in itemizing deductions from AGI? a. $6,650 b. $7,850 c. $6,700 d. $8,625
Aaron, age 55, has an adjusted gross income in 2014 of $30,000. His expenses are as follows: Non-prescription medicine $100 Prescription medicine $500 Doctor visits $500 Weekly meal preparation for a diet plan $2,000 Removal of a benign facial mole $400 Contact lenses $500 Eyeglasses $200 Dental services $300 What is Aaron's itemized deduction for medical expenses? a. $2,000 b. $4,500 c. $1,500 d. $0 During 2015, John, a self-employed individual, paid the following amounts: Real estate tax on Michigan residence $3,800 State income tax 1,800 Real estate taxes on land in Puerto Rico (held as an investment) 1,100 Gift tax paid on gift to daughter 1,200 State sales taxes 1,750 State occupational license fee 300 Property tax on value of his automobile (used 100% for business) 500 What is the maximum amount John can claim as taxes in itemizing deductions from AGI? a. $6,650 b. $7,850 c. $6,700 d. $8,625
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Aaron, age 55, has an adjusted gross income in 2014 of $30,000. His
expenses are as follows:
Non-prescription medicine $100
Prescription medicine $500
Doctor visits $500
Weekly meal preparation for a diet plan $2,000
Removal of a benign facial mole $400
Contact lenses $500
Eyeglasses $200
Dental services $300
What is Aaron's itemized deduction for medical expenses?
a. $2,000
b. $4,500
c. $1,500
d. $0
During 2015, John, a self-employed individual, paid the following
amounts:
Real estate tax on Michigan residence $3,800
State income tax 1,800
Real estate taxes on land in Puerto Rico (held as an investment) 1,100
Gift tax paid on gift to daughter 1,200
State sales taxes 1,750
State occupational license fee 300
Property tax on value of his automobile (used 100% for business) 500
What is the maximum amount John can claim as taxes in itemizing
deductions from AGI?
a. $6,650
b. $7,850
c. $6,700
d. $8,625
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