Part 1: Bob Parker has the following items of income for 2017. Based on these items,...

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.

Solutions

Expert Solution

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

ekkarill92 answered 1 year ago

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