Jolene and Abraham, who are married and file a joint return, incurred the attached medical expenses and taxes during the current year. They received $4,000 in reimbursements from their insurance company of which $300 is for the cosmetic surgery. Their adjusted gross income is $59,500. They are residents of the state of Tennessee and they have no children or dependents. REQUIRED: (1) Using the attached form, calculate the amount of the deduction for medical expenses they would be allowed if they itemized deductions? Show appropriate calculations. (2) Using the attached form, calculate the amount of the deduction for taxes they would be allowed if they itemized deductions? Show appropriate calculations. \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{\begin{tabular}{|c} TAXPAYERS JOLENE AND ABRAHAM \\ MEDICAL EXPENSES AND TAXES INCURRED \\ DURING CURRENT TAX YEAR \end{tabular}} \\ \hline Medical insurance premiums & $,500 \\ \hline Hospital expenses & 950 \\ \hline Doctors & 1,925 \\ \hline Dentist & 575 \\ \hline Veterinarian & 170 \\ \hline Chiropractor & 220 \\ \hline Cosmetic surgery & 1,450 \\ \hline Over the counter drugs & 165 \\ \hline Prescription drugs & 195 \\ \hline Crutches & 105 \\ \hline Federal income tax witheld & 5,125 \\ \hline State income tax withheld & 1,900 \\ \hline State sales taxes from actual receipts & 370 \\ \hline Real estate taxes on primary residence & 1,740 \\ \hline Property tax on car (ad valorem) & 215 \\ \hline Social Security tax & 4,324 \\ \hline Gasoline taxes & 124 \\ \hline Excise taxes & 112 \\ \hline Sales tax on motor vehicle purchased during year & 1,600 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline(1) & \multicolumn{2}{|c|}{\begin{tabular}{c} TAXPAYERS JOLENE AND ABRAHAM \\ CALCULATION OF ITEMIZED DEDUCTION AMOUNT \\ FOR MEDICAL EXPENSES \\ FOR CURRENT TAX YEAR \end{tabular}} \\ \hline & \multicolumn{2}{|c|}{} \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & Total allowable medical costs & \\ \hline & Less: Reimbursements received for allowable deductions & \\ \hline & Total unreimbursed allowable medical costs & \\ \hline & Less: Adjusted gross income limitation & \\ \hline & Allowable deduction for medical costs & \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline (2) & \begin{tabular}{r} TAXPAYF \\ CALCULATION OF ITE \\ FOF \end{tabular} & FOR TAXES \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & Allowable deduction for taxes & \\ \hline & & \\ \hline \end{tabular}