For 2018, Nigel and Lola, Married Taxpayers Without Children, Calculated

question 67

Multiple Choice

For 2018, Nigel and Lola, married taxpayers without children, calculated their total allowable itemized deductions to be $28,100. Accordingly, Nigel and Lola file jointly and should deduct from adjusted gross income
I.the standard deduction amount of $24,000
II.total itemized deductions equal to $28,100.
III.tax credits totaling $4,000 for two qualifying individuals
IV.the standard deduction of $24,000 plus the itemized deductions of $28,100
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• A)Only statement I is correct.
• B)Only statements II is correct.
• C)Statements I, III, and IV are correct.
• D)Statements II and IV are correct.
• E)Statements I, II, III, and IV are correct.

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Definitions:

Stock Investments

Securities representing ownership in a corporation or financial assets bought with the expectation they will generate a return.

Investment Expense

Costs associated with the purchase and management of investments, such as fees, advisors' charges, and other related expenses.

Loss On Investment

The decline in value or financial loss realized when the selling price of an investment is less than its purchase price.

Debt Securities

Financial instruments representing money borrowed that must be repaid, including bonds, debentures, and notes.