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220 Essentials of Federal Income Taxation

Cumulative Problem: Chapters 1–12 ©2007 CCH. All Rights Reserved.

221Textbook Solutions

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222 Essentials of Federal Income Taxation

Cumulative Problem: Chapters 1–12 ©2007 CCH. All Rights Reserved.

223Textbook Solutions

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224 Essentials of Federal Income Taxation

Cumulative Problem: Chapters 1–12 ©2007 CCH. All Rights Reserved.

225Textbook Solutions

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226 Essentials of Federal Income Taxation

Cumulative Problem: Chapters 1–12 ©2007 CCH. All Rights Reserved.

227Textbook Solutions

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228 Essentials of Federal Income Taxation

Cumulative Problem: Chapters 1–12 ©2007 CCH. All Rights Reserved.

229Textbook Solutions

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230 Essentials of Federal Income Taxation

Cumulative Problem: Chapters 1–12 ©2007 CCH. All Rights Reserved.

231Textbook Solutions

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232 Essentials of Federal Income Taxation

Additional Information for Cumulative Problem

Schedule A (line 1): $375 + $790 + $390 + $3,900 + $120 + $125 = $5,700. Over-the-counter medicines are notdeductible medical expenses. The Appses can claim medical expenses they paid on behalf of their dependents.

Schedule A (line 6): $2,400 − (10% × $2,400 = $240 taken on Form 8829) = $2,160.

Schedule A (line 10): $6,250 − (10% × $6,250 = $625 taken on Form 8829) = $5,625.

Form 1040 (line 32): The Appses’ modified AGI is below the MFJ threshold for active participants.

Cumulative Problem: Chapters 1–12 ©2007 CCH. All Rights Reserved.