LO.1 Amos is a self-employed tax attorney. He and Monica, his employee, attend a conference in Dallas sponsored by the American Institute of CPAs. The following expenses are incurred during the trip: Amos Monica Conference registration $ 900 $900 Airfare 1,200 700 Taxi fares 100 0 Lodging in Dallas 750 300 Amos pays for all of these expenses. Calculate the effect of these expenses on Amoss AGI. Would your answer to part (a) change if the American Bar Association had sponsored the conference? Explain.

LO.1 Daniel, age 38, is single and has the following income and expenses in 2018. Salary income $60,000 Net rent income 6,000 Dividend income 3,500 Payment of alimony 12,000 Mortgage interest on residence 4,900 Property tax on residence 1,200 Contribution to traditional IRA 5,000 Contribution to United Church 2,100 Loss on the sale of real estate (held for investment) 2,000 Medical expenses 3,250 State income tax 300 Federal income tax 7,000 Calculate Daniels AGI. Should Daniel itemize his deductions from AGI or take the standard deduction? Explain.