15 points 5. For each of the following situations, determine the amount of the allowable deduction. Be sure to show any necessary calculations and provide explanations of how you determined the deductible amount. Ukarie has an adjusted gross income of $40,000. She made the following contributions to qualified charities: a. Property Given Fair Market Value $7,000 10,000 Basis $18,000 Household Furniture Inventory from her retail 6,000 store GE stock (purchased in 1978) 20,000 2,000 Carla purchased her home in 1994 by paying $60,000 in cash and borrowing $140,000. The home is currently worth $400,000 and her mortgage is $110,000. Carla is involved in a lawsuit (unrelated to any business interests) during the current year and she borrows $125,000 using the equity in her home as collateral for the loan to pay her legal fees and court costs. She pays $9,800 of interest on her original mortgage and $8,000 of interest on the home equity loan during the current year. Tracy is a resident of Kansas and the sole owner of The Bakery. During 2018, Tracy makes the following payments: Estimated federal income $8,000 taxes Estimated state income 3,300 taxes Self-employment taxes Sales tax from Federal Sales tax table 5,600 2,100 oints Property tax on personal residence Tax assessment for sidewalk in front of 900 3,000 personal residence 2017 state tax paid in 2018 with 2017 state tax 200 return 5 points 15 points 5. For each of the following situations, determine the amount of the allowable deduction. Be sure to show any necessary calculations and provide explanations of how you determined the deductible amount. Ukarie has an adjusted gross income of $40,000. She made the following contributions to qualified charities: a. Property Given Fair Market Value $7,000 10,000 Basis $18,000 Household Furniture Inventory from her retail 6,000 store GE stock (purchased in 1978) 20,000 2,000 Carla purchased her home in 1994 by paying $60,000 in cash and borrowing $140,000. The home is currently worth $400,000 and her mortgage is $110,000. Carla is involved in a lawsuit (unrelated to any business interests) during the current year and she borrows $125,000 using the equity in her home as collateral for the loan to pay her legal fees and court costs. She pays $9,800 of interest on her original mortgage and $8,000 of interest on the home equity loan during the current year. Tracy is a resident of Kansas and the sole owner of The Bakery. During 2018, Tracy makes the following payments: Estimated federal income $8,000 taxes Estimated state income 3,300 taxes Self-employment taxes Sales tax from Federal Sales tax table 5,600 2,100 oints Property tax on personal residence Tax assessment for sidewalk in front of 900 3,000 personal residence 2017 state tax paid in 2018 with 2017 state tax 200 return 5 points