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:

Indifference Curve Analysis

A graphical representation used in economics to show different combinations of two goods that provide the consumer with the same level of satisfaction or utility.

Inelastic

A situation where the demand for a good or service is relatively unresponsive to changes in price.

Total Revenue

The total amount of money generated by a business from its primary activities of selling goods or services before any expenses are deducted.

Price

The amount of money required to purchase a good or service, often determined by supply and demand dynamics in the market.