Solve the Problem

Multiple Choice

Solve the problem. Refer to the table if necessary.
-Your deductible expenditures are $8236 for interest on a home mortgage, $3528 for contributions to charity, and $634 for state income taxes. Your filing status entitles you to a standard deduction of
$12,200. Should you itemize your deductions rather than claiming the standard deduction? If so,
What is the difference?

A) Yes, $24,598
B) No, you are better off with the standard deduction.
C) Yes, -$1070
D) Yes, $198