Colin (Single and Age 40) Has AGI of $100,000

question 42

Multiple Choice

Colin (single and age 40) has AGI of $100,000. Colin provided the following information about his cash expenditures for 2018: Interest on loan to purchase corporate securities $ 900
Interest on American Express card 1,200
Points to refinance his home for 10 years at the end of December 2,600
Mortgage interest payments 11,800
Real estate taxes 2,100
State income taxes withheld on salary 5,400
Additional state income tax estimated payment 1,200
Contribution to Republican Party 2,000
Contribution to United Way 500
If Colin does not itemize, what is his total deduction from AGI in 2018:

• A) $4,050
• B) $6,350
• C) $10,400
• D) $12,000

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Definitions:

Psychological Contract

An unwritten agreement that encompasses the mutual beliefs, perceptions, and informal obligations between an employer and its employees.

Flexible Work Schedules

Employment arrangements that allow employees to vary their work hours and locations, offering greater personal control over their work-life balance.

Better Incentives

Enhanced or improved rewards or motivations designed to encourage specific behaviors or outcomes.

Psychological Contract

The unwritten, implicit expectations and beliefs about the mutual obligations between employees and employers beyond the formal employment contract.