Ms. Lincoln paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider.

Question:

Ms. Lincoln paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider. Compute the after-tax cost of these expenses assuming that:

a. Ms. Lincoln doesn’t itemize deductions on her Form 1040.

b. Ms. Lincoln itemizes deductions, her AGI is $48,300, and her marginal tax rate is 24 percent.

c. Ms. Lincoln itemizes deductions, her AGI is $127,300, and her marginal tax rate is 32 percent.

Assume the taxable year is 2018.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

See More Books

Question Posted: Jan 18, 2019 06:43 AM

See More Questions

Ms. Lincoln, age 51, paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider. Compute the after-tax cost of these expenses assuming that: a. Ms. Lincoln doesnt...
Reba Dixon is a fifth grade school teacher who earned a salary of $38,000 in 2014. She is 45 years old and has been divorced for four years. She received $1,200 of alimony payments each month from...
Reba Dixon is a fifth grade school teacher who earned a salary of $38,000 in 2016. She is 45 years old and has been divorced for four years. She received $1,200 of alimony payments each month from...
Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2020. Average Annual Average Premium (Extra Rate of Return return versus Treasury (8) bills) (%) Portfolio...
A circuit contains a resistor in series with a capacitor, the series combination being connected across the terminals of a battery, as in Figure 20.37a. The time constant for charging the capacitor...
Assume a market price is set artificially low. In other words, the price is set below the equilibrium price. How will this affect the market
a. Run a regression of LNPAID on AGE. Is AGE a statistically significant variable? To respond to this question, use a formal test of hypothesis. State your null and alternative hypotheses,...
A project manager discovers that his team has neglected to complete the network diagram for the project. The network diagram is shown in Figure P1227. However, the project manager has some...
Schedule of Cost of Goods Manufactured Sydney Company reported the following amounts for October: Beginning raw materials inventory $144,000 Beginning work-in-process inventory 252,000 Beginning...
Higher unemployment caused by the recession and higher gasoline prices have contributed to a substantial reduction during 2008 in the number of vehicles on roads, bridges, and in tunnels. According...
Conrad Smith, a business executive, is an avid collector of vintage comic books. In February, he sold a 1938 Superman comic for $3,700 that he had purchased six years ago for $625. In December,...
Mr. and Mrs. Compton paid $9,280 of medical expenses that were not reimbursed by their private insurance provider. Compute the after-tax cost of these expenses assuming that: a. The Comptons itemize...
The ratio of a quarterback's completed passes to attempted passes is 3 to 7. 1. If he attempted 32 passes, find how many passes he completed. Round to the nearest whole pass. 2. If he completed 15...
You want to be on the Board of Schenkel Enterprises. Unfortunately, you will be the only one voting for you. If they have 400,000 shares outstanding, and the stock sells for $48 per share, how much...
For a college education, you plan to save up by starting early. What amount is expected at the end of 20 years if the rate is 4% yearly and you invest only $50 each month?
A Zero-Coupon bond has a par value equal to $1,200.The bond will mature in 15 years and has a yield to maturity of 6%.If we assume annual coupon payments, what was the bond's original issue price? PV...
Question 1(c) : With respect to the following equation, what do we mean when we say, "the denominator is what it costs to generate the numerator?" Value of asset today = net cash generated by asset...
Business communication questions- Importance of written communication importance of spoken communication importance of nonverbal communication (gesture, posture, etc) Could you give me an idea for...
Refer to the Longley data given in Section 10.10. Repeat the regression given in the table there by omitting the data for 1962; that is, run the regression for the period 19471961. Compare the two...
What is the amount of total interest dollars earned on a $5,000 deposit earning 6% for 20 years?
Discuss whether there are individual differences in negotiator effectiveness.
Discuss whether there are individual differences in negotiator effectiveness. Discuss.
Discuss whether there are individual differences in negotiator effectiveness. Discuss in detail.
Shahid Pakistan Limited (SPL) is engaged in the production of three products: J, K and L. Following is the extract from its latest annual management accounts: Description J Products K Total L Units...
John Company produces hats and sells them for $100 each. His cost to produce the hats are: DM 20 per unit DL 30 per unit VMOH 10 per unit FMOH 40,000 Selling expenses are $5 per unit and are all...
John Company produces hats and sells them for $100 each. His cost to produce the hats are: DM 20 per unit DL 30 per unit VMOH 10 per unit FMOH 40,000 Selling expenses are $5 per unit and are all...

Ms. Lincoln paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider.

Question:

Step by Step Answer:

a Because the unreimbursed medical expenses are not deductible abovetheline their aftertax cost ...View the full answer

Principles Of Taxation For Business And Investment Planning 2019 Edition

Students also viewed these Business questions