# ACCT 218 | Chapter 5 & 6 | Test (Incomplete)

Jon, age 45, had adjusted gross income of $26,000 in 2015. During the year, he incurred and paid the following medical expenses: Drugs and medicines prescribed by doctors$300
Health insurance premiums $750 Doctors' fees$2,250
Eyeglasses $75 Jon received$900 in 2015 as a reimbursement for a portion of the doctors' fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?
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Jon, age 45, had adjusted gross income of $26,000 in 2015. During the year, he incurred and paid the following medical expenses: Drugs and medicines prescribed by doctors$300
Health insurance premiums $750 Doctors' fees$2,250
Eyeglasses $75 Jon received$900 in 2015 as a reimbursement for a portion of the doctors' fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?
During the current year, Mary paid the following expenses:

Prescription drugs $490 Aspirin and over the counter cold capsules$130
Hospital and doctors $700 Life insurance$260

What is the total amount of medical expenses (before considering the limitation based on adjusted gross income) that would enter into the calculation of itemized deductions on Mary's current year income tax return?
Randy is advised by his physician to install an elevator in his residence, since he is afflicted with heart disease. The cost of installing the elevator is $10,000 and it has an estimated useful life of 10 years. He installs the elevator in January of the current year, and it increases the value of his residence by$8,000. Disregarding the limitation based on adjusted gross income, how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for the current year?
Margo has $2,200 withheld from her wages for state income taxes during 2015. In March of 2015, she paid$400 in additional taxes for her 2014 state tax return. Her state income tax liability for 2015 is $2,700 and she pays the additional$500 when she files her 2015 state tax return in April of 2016. What amount should Margo deduct as an itemized deduction for state income taxes on her 2015 federal income tax return, assuming she elects to deduct state and local income taxes?
During the current year, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business:

Federal income tax (withheld by employer) $1,500 State income tax (withheld by employer)$1,100
FICA tax (withheld by employer) $700 Real property taxes$300
Federal auto gasoline taxes $200 Federal excise tax on telephone bills$50

What amount can George claim for the current year as an itemized deduction for the taxes paid, assuming he elects to deduct state and local income taxes?