1-

Jon, age 45, had adjusted gross income of $26,000 in 2016. During the year, he incurred and paid the following medical expenses:

Drugs and medicines prescribed by doctors	$ 300
Health insurance premiums	$ 750
Doctors' fees	$2,250
Eyeglasses	$ 75

Jon received $900 in 2016 as a reimbursement for a portion of the doctors' fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

a.$425

b.$600

c.$1,000

d.$0

e.None of these choices are correct.

2-

Amy paid the following interest expense during the current year:

Qualified home mortgage interest	$5,000
Credit card interest	$ 1,000
Personal bank loan interest	$ 3,000

What is the amount of Amy's interest deduction for the current year?

a.$3,000

b.$6,000

c.$1,000

d.$4,000

e.$5,000

3-

Stewart had adjusted gross income of $22,000 in 2016. During the year, he made the following contributions to qualified charities: - $7,000 cash - 1,000 shares of Able Corporation common stock, acquired in 1980 (cost and fair market value of $5,000) Considering the charitable contribution deduction limitation, what amount can Stewart claim as a deduction for charitable contributions in 2016?

a.$11,000

b.$12,000

c.$7,000

d.$5,000

e.None of these choices are correct.

4-

Which of the following is not deductible as a medical expense on Schedule A?

a.Payments for marriage counseling

b.Payments for dentures

c.Payments to a nurse

d.Payments for psychiatric care

e.All of these choices are deductible as medical expenses.