Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $67,200 and has incurred the following medical expenses:Dentist charges$ 1,200Physician charges2,370Optical charges565Cost of eyeglasses485Hospital charges2,700Prescription drugs265Over-the-counter drugs735Medical insurance premiums (not through an exchange)855 a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.b. Suppose that Simpson was reimbursed for $350 of the physician's charges and $1,800 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

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Answered: impson, age 45, is a single individual…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $67,200 and has incurred the following medical expenses:

Dentist charges	$ 1,200
Physician charges	2,370
Optical charges	565
Cost of eyeglasses	485
Hospital charges	2,700
Prescription drugs	265
Over-the-counter drugs	735
Medical insurance premiums (not through an exchange)	855

a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

b. Suppose that Simpson was reimbursed for $350 of the physician's charges and $1,800 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

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