In 2018, Sela Traveled from Her Home in Flagstaff to San

question 796

Multiple Choice

In 2018, Sela traveled from her home in Flagstaff to San Francisco to seek specialized medical care. Because she w unable to travel alone, her father accompanied her. Total expenses included: The total medical expenses deductible before the 7.5% limitation are

• A) $2,680.
• B) $2,500.
• C) $2,080.
• D) $1,600.

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Definitions:

Corrective Tax

A tax designed to induce private decision makers to take into account the social costs that arise from a negative externality.

Externality

A side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices.

National Defense

Governmental and military actions and policies aimed at protecting a country from external aggression, threats, and maintaining national security.

Patented Invention

A unique product or process that has been legally protected by a patent to give its inventor exclusive rights to use, make, or sell it for a certain period of time.