Julian and Deloris Move During the Current Year from Their

question 35

Multiple Choice

Julian and Deloris move during the current year from their home in Houston to Santa Fe. Julian was a rocket scientist with NASA in Houston and has accepted a new job with the Los Alamos research lab near Santa Fe. Moving expenses and reimbursement information are presented below. • Direct costs of moving themselves, furnishings and other personal belongings to Santa Fe total $8,000.
• A house-hunting trip before their move to Santa Fe resulted in the total costs of $2,500.
• Julian and Deloris incurred commissions and legal costs in the amount of $12,000 in conjunction with the sale of their Houston residence.
• Los Alamos research laboratories reimbursed Julian and Deloris for $5,000 of their moving costs. What is their Moving Expense deduction?

• A) $17,500 deduction from AGI.
• B) $8,000 deduction for AGI.
• C) $10,500 deduction from AGI.
• D) $3,000 deduction for AGI.
• E) $22,500 decution from AGI.

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Developing Economies

Economies characterized by low income, limited industrialization, and moderate to high population growth. These economies are in the process of experiencing significant structural changes and economic development.

Literacy Rates

The percentage of a population aged 15 and above that can read and write with understanding a short simple statement about their everyday life.

Free-Market Economies

Economic systems in which the prices for goods and services are determined by the open market and consumers, with minimal governmental intervention.