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Problem 6-34 (Algorithmic) (LO. 1)

Daniel, age 38, is single and has the following income and expenses in 2022:

Salary income	$117,000
Net rent income	1,500
Dividend income	700
Payment of alimony (divorce finalized in March 2020)	16,000
Mortgage interest on residence	8,300
Property tax on residence	600
Contribution to traditional IRA (assume the amount is fully deductible)	3,300
Contribution to United Church	2,500
Loss on the sale of real estate (held for investment)	1,825
Medical expenses	6,700
State income tax	1,950
Federal income tax	6,200

Daniel's standard deduction for 2022 is $12,950.

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a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".

Payment of alimony (divorce finalized in March 2019)	Deductible for AGIDeductible from AGINot deductible
Mortgage interest on residence	Deductible for AGIDeductible from AGINot deductible
Property tax on residence	Deductible for AGIDeductible from AGINot deductible
Contribution to traditional IRA (assume the amount is fully deductible)	Deductible for AGIDeductible from AGINot deductible
Contribution to United Church	Deductible for AGIDeductible from AGINot deductible
Loss on the sale of real estate (held for investment)	Deductible for AGIDeductible from AGINot deductible
Medical expenses	Deductible for AGIDeductible from AGINot deductible
State income tax	Deductible for AGIDeductible from AGINot deductible
Federal income tax	Deductible for AGIDeductible from AGINot deductible

What is Daniel's gross income and his AGI? Gross income:

AGI:

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b. Should Daniel itemize his deductions from AGI or take the standard deduction? Because Daniel's total itemized deductions (after any limitations) are ______, he would benefit from

using the standard deductionitemizing his deductions.

.