4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-0. . . . . . . . . . . . . . . . . . 12,137 Problem 5-4 Taxes (LO 5.2) In the current year, Lyndon's employer withheld $1,800 in state income taxes from Lyndon's wages. Lyndon obtained a refund of $200 in this year for overpayment of state income taxes for last year. State income taxes were an itemized deduction on his prior year return. His liability for this year's state income tax is $1,400. Indicate the amount of Lyndon's deduction for state income taxes on his federal tax return assuming he elects to deduct state income taxes for current year. Taxes (LO 5.2) Mike sells his home to Jane on April 2, 2016. Jane pays the propert $2,500. How much may Mike and Jane each deduct fo Note: Because 2016 is a leap year, use 366 days in year y taxes covering the full calendar year in October, which amount to r property taxes in 2016? i rd any division to five decimal d use rounded amounts in subsequent computations. Round your final answers to the nearest dollar. Mike deduction Jane deduction Problem 5-9 Interest (LO 5.3) Matthew borrows $250,000 to invest in bonds. During the current year, his intereston the loan is $30,000. Matthew's interest income from the bonds is $10,000. This is Matthew's only investment income. a. Calculate Matthew's itemized deduction for investment interest expense for the year. b. Is Matthew entitled to a deduction (related to the investment interest expense) in future years? Problem 5-11 Interest (LO 5.3)