Eileen Is a Single Individual with No Dependents

question 30

Essay

Eileen is a single individual with no dependents.Her adjusted gross income for 2013 is $60,000.She has the following items that qualify as itemized deductions.What is the amount of Eileen's AMT adjustment for itemized deductions for 2013?
$\begin{array}{lr}\text { Medical expenses (before limitations) } & \$ 12,000 \\\text { Mortgage interest on a qualified residence } & 8,000 \\\text { Charitable contribution of a Rockwell portrait } & \\(\$ 12,000 \mathrm{FMV} ; \$ 10,000 \text { basis) } & 12,000\\\text { State income taxes paid and withheld } & 3,000 \\\text { Real estate taxes paid } & 1,500 \\\text { Unreimbursed employee expenses (before limitation) } & 2,400 \\\text { Income tax return preparation fee (before limitation) } & 400\end{array}$

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Definitions:

Activity-Based Costing

A method in managerial accounting that assigns costs to products or services based on the activities that go into producing them.

Production Departments

Specific areas or divisions within a manufacturing facility where the actual production or assembly of products takes place.

Activity Cost Pools

A grouping of all the costs related to a specific activity, used in activity-based costing to allocate costs more accurately.

Factory Overhead Costs

Refers to indirect manufacturing costs that are not directly tied to a specific product, such as maintenance, utilities, and rent.