Question 10 John Baker, a cash basis calendar year taxpayer, paid the following during the year:

Social security tax (withheld from wages) $4,500 Real estate taxes $3,200 State income tax $3,400 Special assessment for installation of sidewalks $1,140 Penalty on tax underpayment $300 Flat fee for automobile registration $90

What itemized deduction may John claim for taxes on his return?

1) $7,700

2) $8,000

3) $11,190

4) $6,600

5) None of these

Question 11 Non-home-mortgage interest prepaid in cash can only be deducted:

1) When paid

2) When the loan is liquidated

3) In the year of loan origination

4) Over the period of the loan