Chapter 17, Problem 13AP

Mr. and Mrs. Compton paid $9,280 of medical expenses that were not reimbursed by their private insurance provider. Compute the after-tax cost of these expenses assuming that:

1. a. The Comptons itemize deductions on their joint tax return, their AGI is $87,000, and their marginal tax rate is 24 percent.
2. b. The Comptons itemize deductions on their joint tax return, their AGI is $424,000, and their marginal tax rate is 35 percent.
3. c. The Comptons take the standard deduction on their joint tax return, their AGI is $39,000, and their marginal tax rate is 12 percent.