Randy Is Advised by His Physician to Install an Elevator

question 110

Multiple Choice

Randy is advised by his physician to install an elevator in his residence,since he is afflicted with heart disease.The cost of installing the elevator is $8,000 and it has an estimated useful life of 10 years.He installs the elevator in January of 2013,and it increases the value of his residence by $5,000.Disregarding the limitation based on adjusted gross income,how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for 2013?

• A)$300
• B)$800
• C)$3,000
• D)$8,000
• E)None of the above

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Definitions:

Full Employment

A situation where all available labor resources are being used in the most economically efficient way.

Ppf (Production Possibility Frontier)

A curve depicting the maximum possible output of two goods or services that can be produced with a fixed set of resources and technology, assuming all resources are fully employed.

Consumer Goods

Products and services that are purchased by individuals for personal use or consumption rather than for resale or manufacturing.

Capital Goods

Long-term assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.