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Itemized Deductions (LO. 4) Paula lives in Arkansas, which imposes a state income tax. During 2018, she pays the following taxes: Federal tax withheld $5,125

Itemized Deductions (LO. 4)

Paula lives in Arkansas, which imposes a state income tax. During 2018, she pays the following taxes:

Federal tax withheld $5,125
State income tax withheld 1,900
State sales tax actual receipts 370
Real estate tax 1,740
Property tax on car (ad valoreum) 215
Social Security tax 4,324
Gasoline taxes 124
Excise taxes 112

a. If Paulas adjusted gross income is $35,000 what is her allowable deduction for taxes? ?

b. Assume the same facts as in part a, except that Paula pays $1,600 in sales tax on a motor vehicle she purchased during the year. What is Paulas allowable deduction for taxes? ?

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