Question
In: Accounting
Problem 3-30 (LO. 1) Compute Aiden's 2017 taxable income on the basis of the following information....
Problem 3-30 (LO. 1)
Compute Aiden's 2017 taxable income on the basis of the following information. Aiden is married but has not seen or heard from his wife for over three years.
|
The personal exemption amount for 2017 is $4,050. Click here to access the standard deduction table to use, if required.
a. Indicate whether the items are taxable or not taxable to Aiden.
|
b. What is Aiden's filing
status?
c. Should Aiden itemize his
deductions or take the standard deduction?
d. Aiden's taxable income in 2017 is $
Solutions
Expert Solution
| Salary | +8 0000 |
| Interest on bonds issued by city of boston | (3000) excluded |
| Interest on CD issued by wells Fargo Bank | + 2000 |
| Cash dividends received on Chevron common stock | + 2200 |
| Life insurance proceeds paid on death of aunt ( Aiden was the designated beneficiary of the policy) | (200000) excluded |
| Inheritance received upon death of aunt | (100000) excluded |
| Jackson (a cousin) repaid a loan Aiden made to him in 2008 ( no interest was provided for) | (5000) excluded |
| Itemized deductions ( state income tax, property taxes on residence, interest on home mortgage, and charitable contributions) | - 9700 |
| Number of dependents (children, ages 17 and 18 and mother-in-law, age 70) (3 * 4050) | - 12150 |
| AGI ( 80000 + 2000 + 2200 - 9700 - 12150) | $ 62350 |
| AGI | $ 62350 |
| Standard deduction 2017 ( head of household) | 9350 |
| Personal exemption ( 1 * 4050) | 4050 |
| $ 48950 | |
Aiden chose to itemize his deduction from AGI ($9700) because it provided a greater deduction than head of house hold ( as an abandoned spouse ) . Aiden's taxable income is $48950. Aiden is single as his spouse is away for 3yrs without being heard
ekkarill92 answered 2 years agoRelated Solutions
Compute the taxable income for 2017 for Aiden on the basis of the following information. Aiden...
Compute the taxable income for 2017 for Aiden on the basis of
the following information. Aiden is married but has not seen or
heard from his wife since 2015.
Salary
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Interest on bonds issued by City of Boston
3,000
Interest on CD issued by Wells Fargo Bank
2,000
Cash dividend received on Chevron common stock
2,200
Life insurance proceeds paid upon death of aunt (Aiden was the
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Compute the taxable income for 2019 for Aiden on the basis of the following information. Aiden...
Compute the taxable income for 2019 for Aiden on the basis of
the following information. Aiden is married but has not seen or
heard from his wife since 2017. Salary $80,000 Interest on bonds
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2,200 Life insurance proceeds paid on death of aunt (Aiden was the
designated beneficiary of the policy) 200,000 Inheritance received
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Use the information below to compute the 2017 taxable income and tax liability for an unmarried...
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tax liability for an unmarried taxpayer (age 52 with no
dependents). Prepare an analysis showing each item and amount under
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Required information Problem 8-50 (LO 8-1) Lacy is a single taxpayer. In 2019, her taxable income...
Required information
Problem 8-50 (LO 8-1)
Lacy is a single taxpayer. In 2019, her taxable income is $42,500.
What is her tax liability in each of the following alternative
situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax
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intermediate calculations. Round your answer to 2 decimal
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Problem 8-50 Part-a
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Please Compute Gross Income, Adjusted Gross income, and Taxable income based on the following information below....
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$230.00
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$450.00
Treasure bond Interest
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Short-Term Capital Gain (AMZN STOCK)
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$26.45
Long-term Capital Gain (AAPL STOCK)
$3,000.00
Daycare cost for child #1
$10,000.00
Dentist fees (unreimbursed by insurance)
$10,500.00
Prescription cost(reimbursed by insurance)
$1,380.00
Mortgage Interest
$13,478.00
Property Taxes Paid
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Compute Aiden’s 2019 taxable income on the basis of the following information. Aiden is married but has not seen or heard from his wife for over three years.
Compute Aiden’s 2019 taxable income on the basis of the following information. Aiden is married but has not seen or heard from his wife for over three years.
Salary...............................................................................................................$ 80,000
Interest on bonds issued by City of Boston.....................................................3,000
Interest on CD issued by Wells Fargo Bank.....................................................2,000
Cash dividend received on Chevron common stock......................................2,200
Life insurance proceeds paid due to the death of Aunt Margie
(Aiden was the designated beneficiary of the policy).................................200,000
Inheritance received on death of Aunt Margie............................................100,000
Jackson (a cousin)...
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