Problem 6-34 (Algorithmic) (LO. 1)Daniel, age 38, is single and has the following income and...

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Problem 6-34 (Algorithmic) (LO. 1)Daniel, age 38, is single and has the following income and...

Problem 6-34 (Algorithmic) (LO. 1)

Daniel, age 38, is single and has the following income and expenses in 2018:

Salary income	$105,000
Net rent income	4,500
Dividend income	2,500
Payment of alimony in accordance with the separation agreement which was signed in 2018	8,000
Mortgage interest on residence	8,300
Property tax on residence	1,400
Contribution to traditional IRA (assume the amount is fully deductible)	3,000
Contribution to United Church	1,900
Loss on the sale of real estate (held for investment)	1,825
Medical expenses	3,550
State income tax	1,650
Federal income tax	6,500

a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".Daniel's standard deduction for 2018 is 12,000.

Payment of alimony
Mortgage interest on residence
Property tax on residence
Contribution to traditional IRA (assume the amount is fully deductible)
Contribution to United Church
Loss on the sale of real estate (held for investment)
Medical expenses
State income tax
Federal income tax

b. Daniel's gross income is $ and hisAGI income is $.

c. Calculate Daniel's total itemized deductions (after any limitations).

business accounting

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Answer 1

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Answer #1

Solution: Below classification is standardized. No explanation require Answer: Deductible for AGI Deductible from AGI Deducti

$ 8,300 $ 1,400 $1,900 c) Mortgage interest on residence Property tax on residence Contribution to United Church Medical expe

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Answer 2

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