Question

In: Accounting

This year, Linda Moore earned a $112,000 salary and $2,200 interest income from a jumbo Certificate...

This year, Linda Moore earned a $112,000 salary and $2,200 interest income from a jumbo Certificate of Deposit. She recognized a $15,300 capital loss on the sale of undeveloped land. Compute Linda’s AGI and any capital loss carryforward into future years in each of the following cases. She also recognized a $10,500 capital gain from the sale of corporate stock. She also received a $16,000 capital gain distribution from a mutual fund. She had no other capital transactions this year but has a $17,000 capital loss carryforward from a previous year.

Solutions

Expert Solution

Linda Moore earned a salary = $112,000

interest income from a jumbo Certificate of Deposit = $2,200

Linda recognized a capital loss on the sale of undeveloped land = $15,300.

Linda also recognized a capital gain from the sale of corporate stock = $10,500

.Linda also received a capital gain distribution from a mutual fund = $16,000

She had no other capital transactions this year but has a capital loss carryforward = $17,000

Now we got all the data Linda Moore. Calculating no carry forward

Particular Amount in dollars
salary $112000
+ interest $2200
- Deduction gains $3000
AGI $111,200

Explanation :

AGI = $112000 + $2200 - $3000

= $114,200 - $3000

= $111,200

Particular Amount in dollars
Captial loss $15300
- Captial gains $10500
- Deduction $3000
C.F carry forward $1800

Explanation :

AGI = $15300 - $10500- 3000

= $ 15300 - $13500

= $1800

Note :

Maximum 3000 capable of reducing from AGI. If both are loss will be remaining carry foward

b) AGI and Captial Loss Carry Foward

Particular Amount in dollars
salary $112000
+ interest $2200
+ Captial gains $700
AGI $114,900

Explanation :

AGI = $112000 + $2200 +$700

= $114,900

Note:

No captial loss so no carry foward

c) AGI and Captial Loss Carry Foward

Particular Amount in dollars
salary $112000
+ interest $2200
- Deduction gains $3000
AGI $111,200

Explanation :

AGI = $112000 + $2200 - $3000

= $114,200 - $3000

= $111,200

Particular Amount in dollars
Captial loss $15300
+ Captial gains last year $17000
- Deduction $3000
C.F carry forward $111,200

Explanation :

AGI = $15300 + $17000- 3000

= $32,300 -  3000

= $29300

PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....


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