Toby, a Single Taxpayer with No Dependents, Is an Employee

question 126

Multiple Choice

Toby, a single taxpayer with no dependents, is an employee of a large consulting firm. During the year he incurs the following business expenses that are not reimbursed by his employer: Business entertainment and other meals $3,400 Transportation and lodging 4,200 Toby's AGI is $100,000 and is in the 28% marginal tax rate. In addition to the expenditures described above, his only other qualified itemized deductions are home mortgage interest of $6,000 and property taxes of $2,000. What is the after-tax cost to Toby of his unreimbursed employee business expenses?

• A) $ - 0 -
• B) $5,600
• C) $6,088
• D) $6,508
• E) $7,600

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Definitions:

Sleep Apnea

A sleep disorder characterized by pauses in breathing or periods of shallow breathing during sleep.

Obesity

A condition characterized by excessive body fat that increases the risk of health problems.

Sleep Disorders

Medical conditions characterized by the disruption or alteration of a person's normal sleep patterns, leading to adverse health effects.

REM Rebound

The phenomenon in which there is an increase in REM sleep after a period of REM sleep deprivation.