1.

Al is single, age 60, and has gross income of $140,000 in 2018. His deductible expenses in 2018 are as follows:

Alimony	$20,000
Charitable contributions	4,000
Contribution to a traditional IRA	5,500
Interest on home mortgage and property taxes on personal residence	7,200
State income tax	2,200

What is Als AGI?

	a.	$127,000
	b.	$103,000
	c.	$114,500
	d.	$94,100

2.

Martha participated in a Section 529 qualified tuition program for the benefit of her son. She invested $6,000 in the fund. Four years later her son withdrew $8,000, the entire balance in the program, to pay his college tuition. Which of the following is correct?

	a.	Martha must include $8,000 in her gross income.
	b.	Marthas son must include $8,000 in his gross income.
	c.	Martha is not required to include the $2,000 ($8,000 $6,000) in her gross income when the funds are used to pay the tuition.
	d.	Marthas son must include the $2,000 ($8,000 $6,000) in his gross income when the funds are used to pay the tuition.