Question

In: Accounting

Salary $187,750.00 Interest income $230.00 Municiple Bond interest $450.00 Treasure bond Interest $675.00 Dividends $1,885.00 Short-Term...

Salary $187,750.00
Interest income $230.00
Municiple Bond interest $450.00
Treasure bond Interest $675.00
Dividends $1,885.00
Short-Term Capital Gain (SBUX STOCK) $0.00
Short-Term Capital Gain (AMZN STOCK) -$4,350.00
Short-Term Capital Gain (UA Stock) $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 $4,144.00
Vehicle registration fee $1,250.00
Fee faid to CPA $2,000.00
Gym Membership $600.00
401K contributions $23,980.00
Employer match $17,985.00
Healthcare savings account contribution $2,600.00
Red Cross Donation $1,000.00
Food bank Donation $2,500.00
Church donation $3,750.00
donation to goodwil $450.00

Please Calculate Gross Income and Adjusted gross income

Solutions

Expert Solution

Gross income

Income from salary $ 187,750.00

Interest 230.00

Treasure bond interest 675.00

Dividend 1,885.00

Long term capital gain 3,000.00

Short term capital gain (UA Stock) 26.45

----------------------

Gross income $193,566.45

Adjusted gross income

Salary 187,750.00
Interest income 230.00
Muncipal bond interest

450.00

Treasure bond interest 675.00
Dividend 1885.00
Capital gain -1323.55
Long term capital gain AAPL Stock    3,000.00
Short term capital gain :
SBUX Stock 0
AMZN stock -4350
UA Stock 26.45
Total income 189,666.45
Less Expenses :
Day care cost for child 10000.00
Dentist fees 10500.00
Prescription cost 1380.00
Property tax paid 4144.00
Vehicle registration fee 1250.00
Fee paid to CPA 2,000.00
Gym membership 600.00
401 K membership 23,980.00
health care savings account contribution 2,600.00
Red cross donation 1,000.00
Food bank donation 2,500.00
Church donation 3,750.00
Total expense 63,704
Adjusted gross income 1,25,962.45

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