24.

1. Juanita's net investment income in 2020 was $1,200. She paid the following amounts in interest expense. Compute Juanita's interest deduction on Schedule A.

   Qualified home mortgage interest	$7,000
   Credit card interest	$1,000
   Personal bank loan interest	$3,000
   Investment Interest	$1,700

   	a.	$8,200
   	b.	$9,700
   	c.	$11,000
   	d.	$8,700
   	e.	$12,700

30.

If a calendar year taxpayer's 2020 individual income tax return is mailed on August 15, 2021, the statute of limitations would normally run out on:

		There is no statue of limitations on tax returns.
		April 15, 2024
		April 15, 2023
		August 15, 2024
		August 15, 2023

31. During the current year, Mary paid the following expenses:

Prescription drugs	$260
Aspirin and over the counter cold capsules	$130
Hospital and doctors	$700
Life insurance	$490

What is the total amount of medical expenses (before considering the limitation based on adjusted gross income) that would enter into the calculation of itemized deductions on Mary's current year income tax return?

	a.	$960
	b.	$1,190
	c.	$1,450
	d.	$1,580
	e.	None of the above

33.

QUESTION 33

1. During the year, Mckenzie paid the following taxes. Compute Mckenzie's itemized deduction for taxes if none of the taxes paid are related to a trade or business.

   Federal income tax (withheld by employer)	$1,500
   State income tax (withheld by employer)	$1,100
   FICA tax (withheld by employer)	$ 700
   Real property taxes	$ 900
   Federal auto gasoline taxes	$ 200
   Federal excise tax on telephone bills	$ 50

   	a.	$2,000
   	b.	$2,600
   	c.	$1,150
   	d.	$3,500
   	e.	$4,450