Wayne Developed Heart Problems and Was Unable to Climb the Stairs

question 30

Multiple Choice

Wayne developed heart problems and was unable to climb the stairs to reach his second-floor bedroom.His physician advised him to add a first-floor bedroom to his home.The cost of constructing the room was $42,000.The increase in the value of the residence as a result of the room addition was determined to be $18,000.In addition,Wayne paid the contractor $7,500 to construct an entrance ramp to his home and $10,500 to widen the hallways to accommodate his wheelchair.Wayne's AGI for the year was $120,000.How much of these expenditures can Wayne deduct as a medical expense?

• A) $15,000.
• B) $24,000.
• C) $33,000.
• D) $60,000.
• E) None of the above.

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Definitions:

Credible Threat

A declaration or indication of intended action that is believable and likely enough to influence others' behaviors or decisions.

Warranty

A promise or guarantee made by a seller to a buyer to repair or replace a product that is found to be defective within a specified period.

Credible Threat

A strategy or warning that is believable and likely to be carried out in a strategic situation.

Stackelberg Firm

A business that is considered a leader in a market, setting prices or quantities that followers in the market then respond to.