Mr. and Mrs. Sloan incurred the following expenses on December 15, 2007, when they adopted a child:

Child’s medical expenses

$5,000

Legal expenses

8,000

Agency fee

3,000

Before consideration of any “floor” or other limitation on deductibility, what amount of the above expenses may the Sloans deduct on their 2007 joint income tax return?

  1. $16,000
  2. $13,000
  3. $11,000
  4. $ 5,000