In 2021, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGI of $28,108 on their 1040. During the year they incurred the following expenses: Use round numbers in your answer. Medical insurance premiums Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized Medical care lodging (two people, one night) Hospital bills Doctor bills Dentist bills Prescription drugs and medicines $1,200 400 80 2,200 750 240 360 Marriage counseling In addition, they drove 90 miles for medical transportation, and their insurance company reimbursed them $850 for the above expenses. On the Schedule A of Form 1040, calculate the Murphy's medical expense deduction. 400 During 2021, Tom sold GM stock for $10,000. The stock was purchased 4 years ago for $13,000. Tom also sold Ford Motor Company bonds for $35,000. The bonds were purchased 2 months

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the…