21. Opal fell on the ice and injured her hip this winter. As a result she paid $3,070 for a visit to the hospital emergency room and $820 for follow-up visits with her doctor. While she recuperated, Opal paid $570 for prescription medicine and $670 to a therapist for rehabilitation. Insurance reimbursed Opal $1,270 for these expenses. What is the amount of Opal's qualifying medical expense?

$3,070.

None of the choices are correct.

$3,890.

$3,860.

$5,130.

22. Margaret Lindley paid $15,060 of interest on her $300,600 acquisition debt for her home (fair market value of $500,600), $4,060 of interest on her $30,060 home-equity loan, $1,060 of credit card interest, and $3,060 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,060 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year?

$22,180.

$19,120.

None of the choices are correct.

$23,240.

$18,120.

23. Grace is employed as the manager of a sandwich shop. This year she earned a salary of $45,800 and incurred the following expenses associated with her employment:

Subscriptions to food publications	$380
Cooking class (How to make better subs)	330
Transportation between Graces home and the shop	620

What amount of miscellaneous itemized deductions can Grace claim on Schedule A if these are her only miscellaneous itemized deductions?

$1,330.

$710.

None of the choices are correct.

$190.

$240 if Grace was reimbursed $90 for her cooking class.

25. Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $75,400 of salary, $2,800 long-term capital gain, and $1,700 interest income. Bob's expenses for the year consists of $760 investment advice fees, $680 unreimbursed employee business expenses (a miscellaneous itemized deduction), and $230 tax return preparation fees. What is Bob's actual deduction for miscellaneous itemized deductions?

None of the choices are correct.

$1,440.

$1,670.

Zero; Bob's investment expenses do not exceed two percent of AGI floor.

$1,598.

24. Fred's employer dispatched him on a business trip from the Dallas headquarters to New York this year. During the trip Fred incurred the following unreimbursed expenses:

Air fare	$1,490
Lodging	940
Meals	790
Cab fare	410

What is the amount of Fred's deduction before the application of any AGI limitations?

$2,430.

$3,235.

$3,630.

$1,490.

$0 - the expenses cannot be deducted unless Fred is reimbursed.