George,aged 40,has the Following Expenses

question 9

Essay

George,aged 40,has the following expenses.He wants to include them under itemized deductions for the year.His adjusted gross income is $60,000.What is the total itemized deduction he can take? (Show all work.)
$$\begin{array} { | l | l | } \hline \text { Medical expenses } & \$ 4,500 \\\hline \text { Home mortgage interest } & 8,000 \\\hline \text { Credit card interest } & 450 \\\hline \text { Charitable contributions } & 1,500 \\\hline \text { State property taxes } & 2,400 \\\hline \text { Job-related expenses } & 1,900 \\\hline\end{array}$$

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision; represents the benefits that could have been received by choosing the alternative.

Revenue Forgone

Potential income not earned or lost by choosing an alternative action, representing the opportunity cost of decisions.

Total Cost Method

A accounting approach that involves direct costs, indirect costs, and fixed and variable expenses to determine the overall cost of a product.

Manufacturing Costs

Expenses directly associated with the production of goods, including materials, labor, and overhead.