During the Current Year, Mary Paid the Following Expenses What Is the Total Amount of Medical Expenses (Before Considering

question 24

Multiple Choice

During the current year, Mary paid the following expenses:? $$\begin{array} { l l } \text { Prescription drugs } & \$ 490 \\\text { Aspirin and over the counter cold capsules } & \$ 130 \\\text { Hospital and doctors } & \$ 700 \\\text { Life insurance } & \$ 260\end{array}$$ What is the total amount of medical expenses (before considering the limitation based on adjusted gross income) that would enter into the calculation of itemized deductions on Mary's current year income tax return?

• A)$700
• B)$1,190
• C)$1,450
• D)$1,580
• E)None of the above

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Definitions:

Statement of Income

A financial document that provides a summary of a company's revenues, expenses, and net income over a specific period.

Statement of Financial Position

A financial statement that details a company's assets, liabilities, and shareholders' equity at a specific point in time.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, as opposed to when they are incurred.