Consider the question below from Gleim 6 MC (note that I have posted additional explanations on BlackBoard). Required: Please complete 2020 Schedule A Itemized Deductions (use Google) and complete the Taxes You Paid section. I suggest you download the instructions too, as there may be follow-up assignments on deductions.

During the current year, Paul and Mary Davis, cash-basis taxpayers, paid the following taxes: State income taxes withheld $300 Est. federal income tax $250 Est. state income tax $1,500 Sales tax on new auto used 60% for business $1,400 State gift tax $1,000 Property tax, including $50 for trash pick-up $2,600 Property tax on their vacation home in Canada $1,000 What amount can Mary and Paul claim as an itemized deduction on their current-year federal income tax return?

A. $4,350

1. (2) Please attach the completed Schedule A.

2. (1.5) If this were the only deductions, would the Davises prepare Schedule A? Explain. Hint: refer back to the first homework For/From AGI. As always, I expect you to do critical thinking