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Instructions : Please provide 2-3 sentence brief explanation and choose the best multiple

Instructions : Please provide 2-3 sentence brief explanation and choose the best multiple

Instructions : Please provide 2-3 sentence brief explanation and choose the best multiple choice answer. All sources must be noted. SHOW ALL WORK.

____ 19 Part A.   During 2016, Suey, who is 66, had the following transactions:

Salary

$84,000

Bank loan (proceeds used to buy personal auto)

12,000

Alimony paid

14,000

Child support paid

6,000

Charitable contribution

7,000

IRA contribution

2,000

Gift from aunt

21,000

Home mortgage interest paid

5,000

Interest on City of Atlanta bonds

1,000

Medical expenses

7,800

How much can Suey deduct in medical expenses:

a.

$7,800.

b.

$5,100.

c.

$2,700.

d.

$68,000.

e.

$1,000.

____   19 Part B.   Blad Company purchased a building from Ed for $90,000 cash and a mortgage of $78,000. One year after the transaction, the mortgage had been reduced to $65,000 by principal payments by Blad, but it was apparent that Blad would not be able to continue to make the monthly payments on the mortgage. Ed reduced the amount owed by Blad to $60,000. This reduced the monthly payments to a level that Blad could pay. Blad can reduce its basis in the property by $60,000.

a. True

b. False

Salary

$84,000

Bank loan (proceeds used to buy personal auto)

12,000

Alimony paid

14,000

Child support paid

6,000

Charitable contribution

7,000

IRA contribution

2,000

Gift from aunt

21,000

Home mortgage interest paid

5,000

Interest on City of Atlanta bonds

1,000

Medical expenses

7,800

 

Abhinav 04-Dec-2019

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