QUESTION 7 Lee, one of your clients, was born female but has lived as a man for several years after being diagnosed with gender identify disorder. Lee has decided to begin hormone therapy in connection with the treatment of gender-identity disorder. He asks you if the related costs will be deductible as medical expenses. What do you tell Lee? a. No hormone therapy in connection with the treatment of gender-identify disorder are considered cosmetic in nature and not deductible. Ob. Yes, hormone therapy in connection with the treatment of gender-identify disorder are considered to be for treatment of a disease and are deductible. c. No, only sex reassignment surgery is deductible-not hormone therapy. QUESTION 8 Tina, one of your clients, has found a house she wants to purchase but is not sure she can afford the monthly mortgage payment. The most Tina can afford is $1,500 each month. Tina tells you the interest rate on the loan will be 4%, the amount of the loan will be $200,000, and the term of the loan will be 15 years. Based on these facts, will Tina be able to stay within her $1,500 budget? Hint: Use the "General Calculators", "loan", "amortizing loan" areas under the "TOOLS" section of Checkpoint. a. No, the monthly payment is $2.024.90. b. Yes, the monthly payment is $954.83. c. No, the monthly payment is $1,687.71. d. Yes, the monthly payment is $1,479.38. e. None of the above. QUESTION 9 One of the tax partners at your firm asks you to find Revenue Ruling 66-368 and let her know what type of animal the ruling addresses. What do you tell her? b. Sterile llamas. c. Race horses. d. Breeding cows. e. Pet gerbils.