Linda Had a Swimming Pool Constructed at Her House

question 57

Multiple Choice

Linda had a swimming pool constructed at her house.Her physician advised and prescribed to her that the pool would slow the effects of her degenerative disease.The pool was not suitable for recreational use.Prior to the construction of the pool,the fair market value of her house was $172,000.After the construction of the pool,the appraised fair market value of the house was $181,000.The cost of the pool was $13,000.What is the amount of Linda's qualified medical expense (before considering limits based on AGI) ?

• A)$0
• B)$4,000
• C)$9,000
• D)$13,000

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Definitions:

Vertical Maximum Price-fixing

An arrangement where the manufacturer or a higher level in the supply chain sets a maximum price that retailers cannot exceed in selling a product.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to prohibit monopolies and restrict business practices that reduce competition.

Convicted

The state of having been declared guilty of a criminal offense by the verdict of a court or jury.

Indirect Purchasers

Buyers who acquire a product or service through an intermediary or secondary market, rather than directly from the producer.