Toby,a Single Taxpayer with No Dependents,is an Employee of a Large

question 86

Multiple Choice

Toby,a single taxpayer with no dependents,is an employee of a large consulting firm.During the year he incurs the following business expenses that are not reimbursed by his employer:
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Toby's AGI is $100,000 and is in the 28% marginal tax rate.In addition to the expenditures described above,his only other qualified itemized deductions are home mortgage interest of $6,000 and property taxes of $2,000.What is the after-tax cost to Toby of his unreimbursed employee business expenses?

• A)$- 0 -
• B)$5,600
• C)$6,088
• D)$6,508
• E)$7,600

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Definitions:

Conscious Assumption

A belief or idea that is accepted as true without proof or empirical evidence, adopted deliberately by an individual.

Edgar Schein

A renowned organizational psychologist known for his contributions to the theory of organizational culture, leadership, and group dynamics.

Organizational Culture

The set of shared beliefs, values, norms, and practices that characterizes an institution or organization, influencing how employees interact and approach their work.

Artifacts

Physical objects or tools created and used by people, which often reflect cultural or societal values and practices.