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 65

Baker paid $775 for the preparation of his tax return and incurred $375 of employee business expenses of which $60 was reimbursed by his employer through an accountable plan.Baker also paid a $100 fee for investment advice.Calculate the amount of these expenses that Baker is able to deduct assuming he itemizes his deductions in each of the following situations:
a.Baker's AGI is $50,000.b.Baker's AGI is $100,000.