Choice "C" is correct. Employee business expenses, including unreimbursed car expense, are deductible as itemized deductions subject to the 2% floor.
Choice "b" is incorrect. One-half of the self-employment tax is deductible, but it is a deduction to arrive at adjusted gross income, not as an itemized deduction.
Choice "a" is incorrect. The employee's unreimbursed moving expense is deductible, but it is a deduction to arrive at adjusted gross income, not an itemized deduction.
Choice "d" is incorrect. Self-employed health insurance is deductible, but not as an itemized deduction subject to the 2% floor.