Itemized Deductions (LO. 4)

Paula lives in Arkansas, which imposes a state income tax. During 2019, 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

Refer to only Exhibit 8-3 to answer the following questions. Note: Exhibit 8-3 refers to the 2018 IRS table since the 2019 table is not available at the time.

a. If Paulas adjusted gross income is $35,000 what is her allowable deduction for taxes? $_3,855_

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? (use the sales tax table value of $554 to get the correct answer for the b part of the problem)

$________