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1. In 2010, Margaret and John Murphy are married taxpayers who file a joint tax return with AG1 of $25,000. During the year they incurred the following expenses:

Hospitalization insurance premiums $1,050
Premiums on an insurance policy that pays 300
$100 per day for each day Margaret is hospitalized
Medical care lodging (two people, one night) 65
Hospital bills 2.200
Doctor bills 850
Dentist bills 175
Prescription drugs and medicines 340
Psychiatric-care 300
In addition, during the year they drove 109 miles for medical transportation, and their insurance company reimbursed them $900 for the above expenses. Calculate the Murphy's medical expense deduction.

2. Ken paid the following amounts for interest during 2010:

Qualified interest on home mortgage $4,700
Auto loan interest 850
"Points" on the mortgage for acquisition of his 300
personal residence
Service changes on his account 40
Mastercard interest 300
Calculate Ken's itemized deduction for interest on Schedule A.


3. Jerry made the following contributions during 2010:

His synagogue (by check) $680
The Republican Party (by check) 180
The American Red Cross (by check) 150
His lodge for a holiday party ' " 100
In addition, Jerry donated used furniture to the Salvation Army costing $2,000 with a fair market value of $400. Assuming Jerry has adjusted gross income of $45,000, has the necessary written acknowledgments, and itemizes deductions. Complete the Gifts to Charity section of Schedule A, what is Jerry's deduction for 2010.

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  • Category:- Accounting Basics
  • Reference No.:- M9413841

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