Roger Is Employed as an Actuary

question 78

Multiple Choice

Roger is employed as an actuary.For calendar year 2012,he had AGI of $130,000 and paid the following medical expenses: Derrick and Jane would qualify as Roger's dependents except that they file a joint return.Roger's medical insurance policy does not cover them.Roger filed a claim for $4,800 of his own expenses with his insurance company in November 2012 and received the reimbursement in January 2013.What is Roger's maximum allowable medical expense deduction for 2012?

• A) $9,750.
• B) $10,340.
• C) $19,130.
• D) $20,090.
• E) None of the above.

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Definitions:

Cash Disbursements

The process of paying out money from a business or organization, typically for expenses or obligations.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including both materials and labor costs.

Merchandise Inventory

The total value of a retailer's goods that are available for sale.

Cash Receipts

The money received by a business during a specified period, including revenue from sales, loan proceeds, and investment income.