Sandra Is Single and Does a Lot of Business Entertaining

question 35

Multiple Choice

Sandra is single and does a lot of business entertaining at home. Because Arthur, Sandra's 80­year old dependent grandfather who lived with Sandra, needs medical and nursing care, he moved to Twilight Nursing Home. During the year, Sandra made the following payments on behalf of Arthur:
$\begin{array}{lr}\text { Room at Twilight } & \$ 4,500 \\\text { Meals for Arthur at Twilight } & 850 \\\text { Doctor and nurse fees } & 700 \\\text { Cable TV service for Arthur's room } & 107 \\\text { Total } & \$ 6.157\end{array}$
Twilight has medical staff in residence. Disregarding the AGI floor, how much, if any, of these expenses qualify for a medical deduction by Sandra?

• A) $6,157.
• B) $6,050.
• C) $5,200.
• D) $1,550.
• E) None of the above.

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Definitions:

Arbitrary and Capricious Test

A standard of review used by courts to assess the decision-making process of administrative agencies, ensuring decisions were made fairly and with a sound basis, rather than being whimsical or unreasonable.

Substantial Evidence Test

A legal standard used to review the decisions of administrative agencies, requiring evidence that a reasonable mind might accept as adequate to support a conclusion.

De Novo Review

A type of court review in which the reviewing court considers the matter anew, as if it had not been heard before and without deference to the previous court's decision.

Freedom of Information Act

A U.S. law aimed at ensuring public access to government records, subject to nine exemptions for specific categories of information.