Sandra Is Single and Does Considerable Business Entertaining at Home

question 33

Multiple Choice

Sandra is single and does considerable business entertaining at home.Because Arthur, Sandra's 80-year-old dependent grandfather who lived with Sandra, needs medical and nursing care, he moved to Twilight Nursing Home.During the year, Sandra made the following payments on behalf of Arthur: $$\begin{array} { l r } \text { Room at Twilight } & \$ 4,500 \\\text { Meals for Arthur at Twilight } & 850 \\\text { Doctor and nurse fees } & 700 \\\text { Cable TV service for Arthur's room } & \underline { 107 } \\\text { Total } & \underline { \underline { \$ 6,157 }}\end{array}$$ Twilight has medical staff in residence.Disregarding the AGI floor, how much, if any, of these expenses qualify for a medical deduction by Sandra?

• A)$6,157
• B)$6,050
• C)$5,200
• D)$1,550
• E)None of these

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Definitions:

FIFO Method

A method of inventory valuation where the first items placed in inventory are the first ones to be used or sold.

Mixing Department

A specific section within a manufacturing facility where raw materials are combined to produce a homogeneous product.

Equivalent Units

A calculation used in process costing that converts partially completed units into a number of fully completed units, facilitating cost analysis.

FIFO Method

Stands for "First In, First Out," a method of inventory valuation where the oldest items are sold first.