McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 3

In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor deductible from AGI before considering income limitations or the standard deduction.
a.Fran spent $90 for uniforms for use on her job.Her employer reimbursed her for $75 of this amount under an accountable plan.
b.Timothy, a plumber employed by ACE Plumbing, spent $65 for small tools to be used on his job, but he was not reimbursed by ACE.
c.Jake is a perfume salesperson.Because of his high pay, he receives no allowance or reimbursement from his employer for advertising expenses even though his position requires him to advertise frequently.During the year, he spent $2,200 on legitimate business advertisements.
d.Trey is a self-employed special-duty nurse.He spent $120 for uniforms.
e.Mary, a professor at a community college, spent $340 for magazine subscriptions.The magazines were helpful for her research activities but she was not reimbursed for the expenditures.
f.Wayne lost $325 on the bets he made at the race track, but he won $57 playing online poker.