LO.9 Rita Smith is employed as a computer consultant. For calendar year 2010, she had COMMUNI CAT IONS AGI of $200,000 and paid the following medical expenses:

Medical insurance premiums $ 7,400 Doctor and dentist bills for Larry and Shirley (Rita’s parents) 7,700 Doctor and dentist bills for Rita 10,500 Prescription medicines for Rita 1,450 Nonprescription insulin for Rita 550 Larry and Shirley would each qualify as Rita’s dependent except that they file a joint return. Rita’s medical insurance policy does not cover them. Rita filed a claim for reimbursement of $6,000 of her own expenses with her insurance company in December 2010 and received the reimbursement in January 2011. What is Rita’s maximum allowable medical expense deduction for 2010? Prepare a memo for your firm’s files where you document your conclusions.
ETHICS AND EQUITY