This Year Kelly Bought a New Auto for $20,000 Plus

question 50

Essay

This year Kelly bought a new auto for $20,000 plus $1,650 in state and local sales taxes. Besides this sales tax, Kelly also paid $8,260 in state income taxes and had mortgage interest of $5,500 ($400,000 acquisition indebtedness on her residence). If Kelly files single with AGI of $56,000, what amount of itemized deductions will she be eligible to claim?

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Definitions:

Sample Size

The number of individual observations or data points used in a statistical sample.

Low Income Housing

Housing deemed affordable for those with a household income below a certain threshold, as defined by national or local governments.

Sq.Ft

Abbreviation for square feet, a unit of area measurement equivalent to a square measuring one foot on each side.

Hypothesis

A proposed explanation for a phenomenon, which can be tested through experimentation and observation.