Penny, a full-time biochemist, loves stock car racing. To feed her passion, she bought a used dirt-track car and has started entering some local dirt-track races. The prize money is pretty small ($1,000 for the winner), but she really is not in it for the money. Penny reported the following income and expenses from her nights at the track: $ 3,300 Prize money Expenses: Transportation from her home to the races Depreciation on the dirt-track car 1,750 5,840 3,300 2,400 Entry fees Oil, gas, supplies, repairs for the dirt-track car What are the tax effects of Penny's racing income and expenses assuming that the racing activity is a hobby for Penny? Penny's racing income Penny's racing expense Gross income for tax Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $71,600 and has incurred the following medical expenses: Dentist charges Physician charges Optical charges Cost of eyeglasses Hospital charges Prescription drugs Over-the-counter drugs Medical insurance premiums (not through an exchange) $ 1,700 2,670 995 750 2,500 425 700 1,045 a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. Medical expenses