Charles,who Is Single and Age 61,had AGI of $400,000 During

question 21

Essay

Charles,who is single and age 61,had AGI of $400,000 during 2016.He incurred the following expenses and losses during the year.
Medical expenses before 10%-of-AGI floor
$39,500
State and local income taxes
5,200
Real estate taxes
4,400
Home mortgage interest
5,400
Charitable contributions
4,800
Casualty loss before 10% limitation (after $100 floor)
47,000
Unreimbursed employee expenses subject to 2%-of-AGI limitation
8,900
Gambling losses (Charles had $7,400 of gambling income)
9,800
Compute Charles's total itemized deductions for the year.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, used to cover fixed costs and generate profit.

Business Segments

Different parts of a company that operate in distinct markets or industries, often reported separately in financial statements.

Common Fixed Expenses

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, shared across different parts of a business.

Break-Even Sales

The level of sales at which total revenues equal total costs, resulting in neither profit nor loss for the business.