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1-What are the components of the Tax Formula? 2-Rita, age 45, earned a salary of $85,000...

1-What are the components of the Tax Formula?

2-Rita, age 45, earned a salary of $85,000 in the current year. She contributed $4,000 to her traditional Individual Retirement Account (IRA), sold stock held as an investment for a short-term capital loss of $3,000, and paid $5,400 in alimony to her ex-husband (divorce finalized 2018). Determine her Adjusted Gross Income (AGI).?

3. What IRS Form do you file with the Tax Formula?

4. What is Gross Income?

5. What is accrual method of accounting?

6. What is cash receipts method of accounting?

7. What is hybrid method of accounting?

8. Name five income sources.

9. Name seven items specifically included in Gross Income.

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Expert Solution

jeff jeffy answered 5 months ago
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