Paul, suffers from emphysema and severe allergies and, upon the recommendation of his physician, has a dust elimination system installedin his personal residence. In connection with the system, Paul incurs and pays the following amounts during 2021:Doctor and hospital bills$4,500Dust elimination system10,000Increase in utility bills due to the system450Cost of certified appraisal300In addition, Paul pays $750 for prescribed medicines.The system has an estimated useful life of 20 years. The appraisal was to determine the value of Paul's residence with and without thesystem. The appraisal states that his residence was worth $350,000 before the system was installed and $356,000 after the installation.Paul's AGI for the year was $50,000.a. What is the total of Paul's qualifying medical expenses for 2021?b. What is his medical expense deduction for 2021?

Deduct it by taking your AGI and multiplying it by 7.5%

Answered: Paul, suffers from emphysema and severe…

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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