Please answer all parts of question 14-17, type your response and provide an explanation

I4) Brad, who uses the cash method of accounting, lives in a state that imposes an income tax

(including withholding from wages). On April 14, 2008, he files his state return for 2007, paying

an additional $600 in state income taxes. During 2008, his withholdings for state income tax

purposes amount to $3,550. On April 13, 2009, he files his state return for 2008 claiming a

refund of $800. Brad receives the refund on August 3, 2009. If he itemizes deductions, how

much may Brad claim as a deduction for state income taxes on his Federal income tax return for

calendar year 2008 (filed in April 2009)?

a. $3,350.

b. $3,550.

c. $4,150.

d. ss, l 50.

e. None of the above.

I 5) Rick and Carol Ryan, married taxpayers, took out a mortgage on their home for $160,000 ten

years ago. In October of the current year, when the home had a fair market value of $200,000 and

they owed $ I 25,000 on the mortgage, the Ryans took out a home equity loan for $1 10,000. They

used the funds to purchase a sailboat to be used for recreational purposes. The sailboat does not

qualify as a residence. What is the maximum amount of debt on which the Ryans can deduct

home equity interest?

a. $75,000.

b. $90,000.

c. Sl10,000.

d. $125,000.

e. None of the above.

I 6) Joseph and Sandra, married taxpayers, took out a mortgage on their home for $350,000 in 1989.

In May of this year, when the home had a fair market value of $450,000 and they owed $250,000

on the mortgage, they took out a home equity loan for $220,000. They used the funds to purchase

a single engine airplane to be used for recreational travel purposes. What is the maximum amount

of debt on which they can deduct home equity interest?

a. $50,000

b. $100,000

c. $220,000

d. $230,000

e. None of the above

17) Pedro's child attends a school operated by the church the family attends. Pedro made a donation

of $1,000 to the church in lieu of the normal registration fee of $200. In addition, Pedro paid the

regular tuition of $6,000 to the school. Based on this information, what is Pedro's charitable

contribution?

a. $0

b. $800

c. $1,000

d. $6,800