Westin Paid the Following Taxes This Year What Amount Can Arun Deduct as an Itemized Deduction on |

question 9

Multiple Choice

Westin paid the following taxes this year: $$\begin{array} {| l | r | } \hline \text { Real estate taxes on rental property he owns } & \$ 4,000 \\\hline \text { Real estate taxes on his own residence } & 3,600 \\\hline \text { Federal income taxes } & 18,000 \\\hline \text { State income taxes } & 5,400 \\\hline \text { Local city income taxes } & 1,500 \\\hline\end{array}$$ What amount can Arun deduct as an itemized deduction on his tax return?

• A)$10,000
• B)$28,500
• C)$10,500
• D)$14,500

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Definitions:

Manufacturing Facility

A site equipped with machinery and tools specifically designed for the production of goods.

Manufacturing Overhead

All costs incurred in the production process that cannot be directly attributed to specific units produced, such as maintenance and utilities.

Conversion Cost

The sum of direct labor and manufacturing overhead costs, representing the costs needed to convert raw materials into finished goods.

Direct Materials

These are the raw materials that are directly incorporated into a finished product.