Cal Reported the Following Itemized Deductions on His 2017 Tax

question 36

Multiple Choice

Cal reported the following itemized deductions on his 2017 tax return.His AGI for 2017 was $85,000.The mortgage interest is all qualified mortgage interest to purchase his personal residence.For AMT,compute his total itemized deductions. $\begin{array}{lr}\text { Medical expenses (after the 10.0\% of AGI floor) } & 8,000 \\\text { State income taxes } & 5,100 \\\text { Home mortgage interest } & 13,500 \\\text { Charitable contributions } & 4,200 \\\text { Miscellaneous itemized deductions (after the 2\% of AGI floor) } & 2,800\end{array}$

• A)$0.
• B)$17,700.
• C)$25,700.
• D)$33,600.

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Definitions:

Elite Democrats

A term that refers to members of the Democratic Party in the United States who are considered to be part of the political, economic, or social elite.

Economic Policy

Guidelines and practices governments use to influence their nation's economy, covering fiscal policy, monetary policy, and trade regulations.

Inequalities

The uneven distribution or access to resources, rights, and opportunities among different groups in society.

Laffer Curve

A theoretical representation showing the relationship between tax rates and the amount of tax revenue collected by governments.