Colin (Age 40) Is Single and Itemizes His Deductions

question 69

Multiple Choice

Colin (age 40) is single and itemizes his deductions. His AGI is $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 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
What is Colin's deduction for taxes?

• A) $8,700
• B) $7,500
• C) $5,400
• D) $2,100

---

Definitions:

CVP

Cost Volume Profit analysis, a financial model that helps companies understand how changes in costs and sales volume affect profits.

Diversified Market

Two or more customer segments with different needs and problems that bear no relationship to each other.

Customer Segments

Distinct groups of people who share similar needs or characteristics targeted by a business's products or services.

Segmented Market

A market divided into groups according to customers’ different needs and problems.