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. Consider the following expenses: (Click the icon to view the expenses.) Requirement How much of each expense is currently deductible by a cash basis
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Consider the following expenses: (Click the icon to view the expenses.) Requirement How much of each expense is currently deductible by a cash basis taxpayer? (Enter a "0" if none of the amount is currently deductible.) Current Year Deduction - Cash Basis Taxpayer a. Medical prescriptions costing $35 paid by credit card (medical expenses already exceed the AGI floor.) b. Prepaid interest (not related to points) of $360 on a residential loan. c. Taxpayer borrows $200 from the bank to make a charitable contribution. The $200 is paid to the charitable organization before the end of the tax year. d. Taxpayer gives a note to his church indicating an intent to contribute $1,100. A calendar-year individual mails a check for $300 to his church on December 31. The check is postmarked December 31 and clears the bank on January 4. eStep by Step Solution
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