Larry and Beth Are Married and Together Have AGI of $80,000

Multiple Choice

Larry and Beth are married and together have AGI of $80,000 in 2010.They have two dependents and file a joint return.They pay $3,000 for a high deductible health insurance policy and they contribute $2,400 to a qualified Health Savings Account.During the year,they paid the following amounts for medical care: $7,500 in physician and dentist bills and hospital expenses,and $1,700 for prescribed medicine and drugs.In November 2010,they received an insurance reimbursement of $2,100 for hospitalization.They expect to receive an additional reimbursement of $1,000 in January 2011.Determine the maximum deduction allowable for medical expenses in 2010.

A) $4,100.
B) $6,100.
C) $7,100.
D) $10,100.
E) None of the above.