Athena Wants to Determine If She Should Itemize Her Deductions

question 1

Multiple Choice

Athena wants to determine if she should itemize her deductions.She has identified several possible deductions.Which of the following is NOT a proper deduction?

• A) Contributions to charitable organizations
• B) Mortgage interest
• C) Medical and dental expenses in excess of 7.5% of AGI
• D) Miscellaneous expenses less than 2% of AGI
• E) State income taxes

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Definitions:

Cost Of Goods Purchased

The total expense incurred by a company to buy the goods it has purchased for resale, including shipping and handling fees.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting the efficiency of a company in managing its operations and costs.

Operating Expenses

Costs incurred during the normal operations of a business, excluding the cost of goods sold.

Sales

The transactions involving the exchange of goods or services for money, constituting the primary revenue source for most businesses.