Paul, a Calendar Year Married Taxpayer, Files a Joint Return

question 52

Multiple Choice

Paul, a calendar year married taxpayer, files a joint return for 2017.Information for 2017 includes the following: $\begin{array}{lr}\text { AGI } & \$ 175,000 \\\text { State income taxes } & 13,500 \\\text { State sal es tax } & 3,000 \\\text { Real estate taxes } & 18,900 \\\text { Gambling losses (gambling gains were } \$ 12,000 \text { ) } & 6,800\end{array}$ Paul's allowable itemized deductions for 2017 are:

• A)$13,500.
• B)$32,400.
• C)$39,200.
• D)$42,200.
• E)None of the above.

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Definitions:

Trade Creditors

Suppliers or vendors that allow businesses to buy goods or services on account, paying them at a later date.

Flexible Lending Arrangements

Financial agreements that offer adaptable repayment terms to accommodate the borrower's financial situation.

Asset-Based Lending

A type of financing where loans are given based on the value of an individual's or company's assets.

Loan Collateral

Assets or property pledged by a borrower to secure a loan, serving as a guarantee for the lender that the loan will be repaid.