Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $52,000 and has incurred the following medical expenses: Dentist charges Physician charges Optical charges $ 1,740 2,190 515 Cost of eyeglasses 495 Hospital charges 3,600 Prescription drugs 285 Over-the-counter drugs 860 Medical insurance premiums (not through an exchange) 1,220 Problem 6-38 Part-a (Algo) a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. Medical expenses

Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $55,000 and has incurred the following medical expenses: Dentist charges Physician charges Optical charges Cost of eyeglasses Hospital charges Prescription drugs Over-the-counter drugs Medical insurance premiums (not through an exchange). $ 1,370 2,630 655 345 4,150 685 725 1,260 b. Suppose that Simpson was reimbursed for $300 of the physician's charges and $3,250 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. Medical expenses

Bounce Back Insurance Company carries three major lines of insurance: auto, workers' compensation, and homeowners. The company has prepared the following report: Bounce Back Insurance CompanyProduct Profitability ReportFor the Year Ended December 31   Auto   Workers' Compensation   Homeowners Premium revenue $5,800,000    $6,250,000    $8,200,000  Estimated claims (4,060,000) (4,375,000) (5,740,000) Underwriting income $1,740,000  $1,875,000  $2,460,000  Underwriting income as a percent of premium revenue 30% 30% 30%   Management is concerned that the administrative expenses may make some of the insurance lines unprofitable. However, the administrative expenses have not been allocated to the insurance lines. The controller has suggested that the administrative expenses could be assigned to the insurance lines using activity-based costing. The administrative expenses are comprised of five activities. The activities and their rates are as follows: Activity Activity…

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