1. Simon lost $5,000 gambling this year on a trip to Las Vegas. In addition, he paid $2,000 to his broker for managing his $200,000 portfolio, and $1,500 to his accountant for preparing his tax return. In addition, Simon incurred $2,500 in transportation costs commuting back and forth from his home to his employers office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct (assuming he itemizes his deductions).

Deductible amount:

2. Mike paid $4,000 of interest on a qualified education loan that he used to pay for his dependent sons college education. How much of this payment can Mike deduct as a for AGI deduction if he files married-joint and reports modified AGI of $150,000?'

a. 4000

b. 2500

c. 2000

d. 1250

e. None of the choices are correct - no deduction is allowed.