Which of the following statements are correct?

1. If an employer reimbursement plan is an accountable plan and expense is fully reimbursed, the employee does not have to report either the expense or the reimbursement.
2. A taxpayer may use either the actual cost method or the standard mileage for deducting auto expenses.
3. A transaction loss occurs when an asset is disposed of at less than its basis.
4. The standard deduction amounts, based on the filing status of the taxpayer, are adjusted upward each year for inflation.
5. To qualify as a qualifying child, an individual must meet all five tests. There are the age test, the non-support test, the principal residence test, the relationship test, and the citizen or residency test.
6. Unreimbursed medical costs are deductible only to the extent that they exceed 3.0 percent of the taxpayers adjusted gross income.