Which of the Following Items Would Be an Itemized Deduction

question 91

Multiple Choice

Which of the following items would be an itemized deduction on Schedule A of Form 1040 not subject to the 2%-of-AGI floor?

• A)Professional dues paid by an accountant (employed by Ford Motor Co.) to the National Association of Accountants.
• B)Gambling losses to the extent of gambling winnings.
• C)Job hunting costs.
• D)Appraisal fee paid to a valuation expert to determine the fair market value of art work donated to a qualified museum.
• E)None of the above.

---

Definitions:

Factory Overhead

All indirect costs associated with manufacturing, including but not limited to utilities, maintenance of equipment, and factory staff salaries, excluding direct labor and direct materials.

Absorption Costing Income Statement

An income statement format that incorporates the full cost of manufacturing a product, including both fixed and variable manufacturing costs, in determining the cost of goods sold.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in the production process.

Cost of Goods Sold

Costs directly linked to the manufacture of goods a company sells, encompassing both materials and labor expenses.