1. Kenneth has an adjusted gross income of $114000. His Schedule A expenses were as follows:

		Interest on home mortgage, $12500
		Property taxes on home, $4000
		State income tax, $8000
		Charitable contributions, $1000

What will he be able to claim for total itemized deductions?

A) $23500

B) $13500

C) $25500

2. Nicole sold shares of Disney Company that were given to her 20 years ago by her grandmother to pay for her down-payment on her new home. She has a 22% marginal tax rate and a 17.0% average tax rate. How much tax will she pay on her $70000 gain in the stock?

A) 15%

B) 0%

C) 17.0%