2. If Lola Harper had the following itemized deductions, should she use Schedule A or
the standard deduction? The standard deduction for her tax situation is $12,000. (LO
4.2)
Donations to church and other charities, $6,050
Medical and dental expenses exceeding 10 percent of adjusted gross income,
$2,400
State income tax, $4,690
3. Kaye Blanchard is 50 years old. She has $30,000 of adjusted gross income and
$8,000 of qualified medical expenses. She will be itemizing her tax deductions this year.
How much of a tax deduction will Kaye be able to deduct (assume 10% floor for
deduction)? (LO 4.2)
4. Imari Brown arrived at the following tax information:
Gross salary, $36,145
Additional small business income, $10,000
Interest earnings, $205
Dividend income, $65
Standard deduction, $12,000
Itemized deductions, $14,250
Adjustments (subtractions) to income, $5,000
What amount would Imari report as taxable income? (LO 4.2)
Income =
Itemized deduction = $14,250 (vs. standard deduction?)
Adjustments to income = \$5,000
Taxable income = $