EBK PERSONAL FINANCE
EBK PERSONAL FINANCE
7th Edition
ISBN: 8220100659713
Author: KEOWN
Publisher: PEARSON
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Chapter 4, Problem 3DC2
Summary Introduction

Case summary:

Mr. & Mrs. G a middle-aged couple with two children, Mr. R, age 13, and Mr. S, age 11 whom they adopted this year. The G’s have an extensive retirement portfolio invested primarily in growth-oriented mutual funds. Their annual investment income is only $500, none of which is attributable to capital gains. Mr. A works in the banking industry and receives an annual income of $32,500.while Mrs. A, who owns the only travel agency in town, makes about $40,000 a year. Their family gives extensively to charities.

Character in the case:

Mr. A and Mrs. A.

Adequate information:

Medical expenses are $3,600.

Rusty’s braces expense are $1,500.

Real estate taxes $900.

State taxes withheld and hold $4,000.

Mortgage interest expense is $7,200.

Charitable contribution is $3,400.

Unreimbursed business expenses are $2,300.

Qualified adoption expenses $6,700.

To explain:

Whether the moving expenses are deductible.

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