During the Current Year, Deborah Baronne, a Single Individual, Paid

question 46

Essay

During the current year, Deborah Baronne, a single individual, paid the following amounts:
$\begin{array}{ll}\text { Federal income tax } & \$ 10,000 \\\text { State income tax } & \$ 4,000 \\\text { Real estate taxes on land in France } & \$ 1,500 \\\text { Real estate taxes on land in U.S. } & \$ 1,700 \\\text { State sales taxes } & \$ 2,000 \\\text { State occupational license fee } & \$ 600\end{array}$ How much can Deborah deduct in taxes as itemized deductions?

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Definitions:

Annual Incomes

The total amount of income received annually from all sources before any deductions.

Cash Payback

A capital budgeting technique that calculates the period required for an investment to generate cash flows sufficient to recover its initial cost.

Automatic Insertion Machine

A machine used in manufacturing to automatically place components onto printed circuit boards (PCBs).

Accountant

A professional who performs accounting functions such as audits or financial statement analysis.