...appearance cost $15,000 and the surgery to reshape her chin cost $4,000. How much of Jeanne’s surgical fees will qualify as a deductible medical expense (before application of the 7.5% limitation)? a. $0. b. $4,000. c. $15,000. d. $19,000. e. None of the above. ANS: C Cosmetic surgery is necessary (and therefore deductible) when it ameliorates (1) a deformity arising from a congenital abnormality, (2) a personal injury, or (3) a disfiguring disease. The $15,000 cost incurred in connection with the restorative surgery (required as a result of the accident) is deductible because the surgery was necessary. Amounts paid for the unnecessary cosmetic surgery ($4,000 for reshaping the chin) are not deductible as a medical expense. PTS: 1 REF: Example 2 | Example 3 2 2. Fred and Lucy are married and together have AGI of $120,000 in 2007. They have four dependents and file a joint return. They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account. During the year, they paid the following amounts for medical care: $9,200 in doctor and dentist bills and hospital expenses, and $3,000 for prescribed medicine and drugs. In October 2007, they received an insurance reimbursement of $4,400 for hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2008. Determine the maximum deduction allowable for...
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...Includes Over Two Hours of Bonus Audio on the CD Includes Real-World Scenarios and Leading-Edge Exam Prep Software Featuring: Updated for the Project Management Body of Knowledge (PMBOK® Guide), Fourth Edition • Custom Test Engine • Hundreds of Sample Questions • Chapter Review in Audio Format • Electronic Flashcards • Entire Book in PDF PMP Fifth Edition SERIOUS SKILLS. ® Project Management Professional Exam STUDY GUIDE Kim Heldman Project Management Professional Exam Study Guide Fifth Edition PMP ® Project Management Professional Exam Study Guide Fifth Edition PMP ® Kim Heldman Acquisitions Editor: Jeff Kellum Development Editor: Alexa Murphy Technical Editors: Terri Wagner and Brett Feddersen Production Editor: Christine O’Connor Copy Editor: Judy Flynn Production Manager: Tim Tate Vice President and Executive Group Publisher: Richard Swadley Vice President and Publisher: Neil Edde Project Manager 1: Laura Moss-Hollister Associate Producer: Angie Denny Quality Assurance: Josh Frank Book Designers: Judy Fung, Bill Gibson Compositor: Craig Woods, Happenstance Type-O-Rama Proofreader: Publication Services, Inc. Indexer: Nancy Guenther Project Coordinator, Cover: Lynsey Stanford Cover Designer: Ryan Sneed Copyright © 2009 by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada ISBN: 978-0-470-45558-6 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form...
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