In: Accounting
Part 1: Bob Parker has the following items of income for 2017. Based on these items, please calculate Bob’s adjusted gross income (AGI). In addition, cite your reference to substantiate your rationale for each item.
Wages from employer | 55,000 |
Interest from municipal bonds | 1,250 |
Dividend income from ABC stock | 750 |
Capital loss from stock transactions | 5,000 |
Interest from savings account | 500 |
Amount received as life insurance beneficiary | 25,000 |
Trip awarded to Bob for meeting sales quota | 5,000 |
Contributed to IRA | 2,500 |
Alimony paid | 12,000 |
Early withdrawal penalty on savings account | 50 |
Loss due to damage on personal vehicle | 1,000 |
Requirements
Clearly identify the requirements being addressed. Show all calculations within the cells of an MS Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well; no hard coding of solutions. Submit a single MS Excel file for grading.
Wages from employer | $ 55,000.00 |
Interest from municipal bonds | $ 1,250.00 |
Dividend income from ABC stock | $ 750.00 |
Capital loss from stock transactions | $ (3,000.00) |
Interest from savings account | $ 500.00 |
Amount received as life insurance beneficiary | $ 25,000.00 |
Gross Income | $ 79,500.00 |
Trip awarded to Bob for meeting sales quota | $ 5,000.00 |
Contributed to IRA | $ 2,500.00 |
Alimony paid | $ 12,000.00 |
Early withdrawal penalty on savings account | $ 50.00 |
Loss due to damage on personal vehicle | $ 1,000.00 |
Adjusted Gross Income | $ 58,950.00 |
Add all of the above of gross income and deduct below the gross income from gross income to arrive at AGI