Antonio Reported the Following Itemized Deductions on His 2017 Tax

question 56

Essay

Antonio reported the following itemized deductions on his 2017 tax return.His AGI for 2017 was $95,000.The mortgage interest is all qualified mortgage interest to purchase his personal residence.For AMT,compute his total adjustment for itemized deductions.
$\begin{array}{lr}\text {Medical expenses (before \( 10.0 \% \) of AGI floor) }&\$8,500\\\text { State income taxes}&\$6,500\\\text {Home mortgage interest }&\$14,500\\\text {Charitable contributions }&\$3,500\\\text { Miscellaneous itemized deductions (before } 2 \% \text { of AGI floor) }&\$2,800\end{array}$

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Definitions:

Weighted-Average Method

A cost flow assumption used in inventory valuation and process costing that smooths out price variations by averaging the costs.

Materials

The physical components used in the production of goods, including both raw inputs and manufactured parts.

Processing Department

A section of a manufacturing facility where a specific type of processing or assembly operation is performed on products.

Ending Inventory

Ending Inventory refers to the total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.