1. Problem 6-34 (Algorithmic) (LO. 1)

   Daniel, age 38, is single and has the following income and expenses in 2018:

   Salary income	$105,000
   Net rent income	4,500
   Dividend income	2,500
   Payment of alimony in accordance with the separation agreement which was signed in 2018	8,000
   Mortgage interest on residence	8,300
   Property tax on residence	1,400
   Contribution to traditional IRA (assume the amount is fully deductible)	3,000
   Contribution to United Church	1,900
   Loss on the sale of real estate (held for investment)	1,825
   Medical expenses	3,550
   State income tax	1,650
   Federal income tax	6,500

   Daniel's standard deduction for 2018 is 12,000.

   a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".

   Payment of alimony
   Mortgage interest on residence
   Property tax on residence
   Contribution to traditional IRA (assume the amount is fully deductible)
   Contribution to United Church
   Loss on the sale of real estate (held for investment)
   Medical expenses
   State income tax
   Federal income tax

   b. Daniel's gross income is $ and his AGI income is $.

   c. Calculate Daniel's total itemized deductions (after any limitations). $

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