1. James and Marie are married and have filed a joint tax return since 2002. They have two school age children who lived with them all year. In January 2017 Maries cousin, Carol, came to live with them. Carol had no income for the entire year and depended entirely on James and Marie for support. In 2017, James and Marie had the following income and expenses:

   * Wages $120,500

   * Interest from NYS bonds $ 1,950

   * Interest on savings account $ 2,500

   * Stock dividend (no cash option / FMV on date received) $ 9,500

   * Long-term capital gain $ 21,000

   * Short term capital loss $ 28,000

   * Section 1244 loss $ 20,000

   * Medical expenses $ 10,000

   * Donation of LTCG property to charitable organization

   Adjustment Basis $ 58,000

   Fair Market Value $ 72,000

   Determine James and Maries AGI for 2017.

   	a.	$103,000
   	b.	$100,000
   	c.	$83,000
   	d.	$80,000
   	e.	None of the above

1. How much can they deduct for medical expenses assuming a 7.5% limitation?

   	a.	$10,000
   	b.	$2,275
   	c.	$2,500
   	d.	$775
   	e.	None of the above

1. How much can they deduct for donations (assuming no election)?

   	a.	$30,000
   	b.	$50,000
   	c.	$58,000
   	d.	$72,000
   	e.	None of the Above

3.33 points

QUESTION 21

1. How much of the donations can be carried over (assuming no election)?

   	a.	$8,000
   	b.	$42,000
   	c.	$58,000
   	d.	$72,000
   	e.	None of the above

1. Determine the capital loss carryover.

   	a.	$28,000
   	b.	$20,000
   	c.	$7,000
   	d.	$4,000
   	e.	None of the above

1. Determine taxable income before deduction for exemption and assuming no election.

   	a.	$67,500
   	b.	$70,000
   	c.	$87,500
   	d.	$100,000
   	e.	None of the above