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1. Before considering any of the following, Jack’s AGI was $80,000. As an employee, Jack incurred the following expenses—• Transportation, $18,000• Meals & entertainment, $12,000Jack’s employer reimbursed $21,000 of the $36,000 expenses incurred. Jack was required to provide the employer a full accounting, but the reimbursement did not specify which expense was being reimbursed. And, in the event that the reimbursement exceeded the expense incurred, Jack would have to repay the overpayment. What is the amount & character (i.e., for AGI or ID) of Jack’s deduction? Be sure your answer(s) reflect the %-of-AGI limit, if applicable.1. ____ Deduction for AGI2. ____ Itemized deduction (after consideration of the %-of-AGI limit)A. $30,000B. $28,400C. $5,600D. $27,980E. $7,200F. None of the other answers is correctG. $21,000H. $0
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