accounting- Dan lives in Duncan, a small town in Arizona

QUESTION

7-37 Medical expense deduction:Dan lives in Duncan, a small town in Arizona. Because of a rare blood disease, Dan is required to take special medical treatments once a month. The closest place these treatments are available to Dan is in phoenix, 200 miles away. The treatments are provided on an outpatient basis but require him to stay overnight in phoenix. During the year, Dan makes 12 trips to phoenix by automobile to receive the treatments. The motel he always stays in charges $85 per night. For the year, Dan also spends a total of $250 for meals on these trips. $100 of this $250 is spent while en route to phoenix. What is the amount of Dan’s qualified medical expenses for 2012?7-50 Itemized deductions:During 2012, Doug incurs the following deductible expenses: $2,300 in the state income taxes, $3,000 in local property taxes, $800 in medical expenses, and $2,000 in charitable contributions. He is single, has no dependents, and has $35,000 AGI for the year. What is the amount of Doug’s taxable income?

 

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