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Please refer to usa tax laws 1)F, a single taxpayer, age 42, had income and expenses...

Please refer to usa tax laws

1)F, a single taxpayer, age 42, had income and expenses as follows for 2020: Total income $33,000 Exclusions (municipal bond interest) 2,000 Deductions for A.G.I. 1,200 Total itemized deductions 18,020 Standard deduction 12,400 What are F's adjusted gross income and her taxable income, respectively?

a. $29,800; $11,780 b. $29,800; $17,400 c. $29,800; $620 d. $33,000; $14,980

2)

G is an eleven-year-old heiress whose share of income from various sources is as follows for the current year:

                                                                                                                                 G's Share of

                                                                                                                                          Entity's                  G's Share of

                Source                                                                                                     Net Income                Distributions

                LM Trust                                                                                                        $45,000                         $30,000

                ABC Partnership                                                                                            80,000                           22,000

                XYZ Corporation, a C corporation                                                              480,000                           76,000

                Interest from bank savings account                                                                                                      50,000

G's A.G.I. (ignoring the deduction for one-half of any self-employment tax, if any) is how much?

            a.     $178,000

            b.     $605,000

            c.     $251,000

            d.     $236,000

Solutions

Expert Solution

Question:1

What are F's adjusted gross income and her taxable income, respectively?

a. $29,800; $11,780 b. $29,800; $17,400 c. $29,800; $620 d. $33,000; $14,980

Answer: Option (a) is the correct answer.

Question:2

G's A.G.I. (ignoring the deduction for one-half of any self-employment tax, if any) is how much?

            a.     $178,000

           b.     $605,000

            c.     $251,000

            d.     $236,000

Answer: Option (d) is the correct answer.

ekkarill92 answered 1 year ago
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