Question

In: Accounting

Buck had the following items for 2018. Calculate his adjusted gross income (AGI) for 2018. Write...

Buck had the following items for 2018. Calculate his adjusted gross income (AGI) for 2018. Write down how each of the following items impacts the AIG and calculate the AGI.

Buck and his ex-wife divorced in 2010.

If an item increases the AGI, write the positive number. If an item decreases the AGI, write the negative number. If an item does not impact the AGI, write 0. For instance, he had wages of $80,000. Write 80,000 or 80000.

Wages $80,000

Interest income from corporate bonds $27,000

Alimony paid to her ex-wife $2,000

Itemized deductions $8,000

Standard Deduction $12,000

Cash gift from grandma $8,000

Wages	80,000
Interest income from corporate bonds
Alimony paid
Itemized deductions
Standard deduction
Cash gift
AGI

a) How does the interest income from Corporate bonds impact his AGI?

B. How does the alimony paid impact his AGI?

(c) How do his itemized deductions impact his AGI?

(d) How does the Standard deduction impact his AGI?

How does the cash gift impact his AGI?

(f) What is his AGI?

Expert Solution

ekkarill92 answered 1 year ago

List four items that are considered deductions for AGI(Adjusted Gross Income) - when listing these items...

List four items that are considered deductions for AGI(Adjusted Gross Income) - when listing these items - state whether they are deducted on the Form 1040 or on a supporting form or schedule. What are considered Educational Related Expenses as they relate to deductions for AGI(Adjusted Gross Income)

What is Stella's 2018 adjusted gross income ("AGI") that will be reported on Form 1040, Line...

What is Stella's 2018 adjusted gross income ("AGI") that will be reported on Form 1040, Line 7?

The adjusted gross income number (AGI) is an important one. It is said it is always...

The adjusted gross income number (AGI) is an important one. It is said it is always better for a deduction to be "for" AGI, i.e., deductible in arriving at AGI. These are also called "above the line" deductions. Why is it better? Can you name any specific benefits to being deductible above the AGI line? Discuss one or two "above the line" expenses or adjustments to income from the front page of the 1040. Why policy reason do you think...

Tracy is single and had adjusted gross income of $37,400 in 2018. Tracy also has the...

Tracy is single and had adjusted gross income of $37,400 in 2018. Tracy also has the following items: Unreimbursed medical expenses). $3,947 State income tax) 1,710 Interest expense (first mortgage) 3,212 Real estate tax). 690 Interest expense—car loan). 471 Interest expense—credit card). 979 Gifts to charity). 206 The amount Tracy may claim in itemized deductions is: ?????????

Chris, who files single, has an Adjusted Gross Income (AGI) of $100,000. Compute the following, assuming...

Chris, who files single, has an Adjusted Gross Income (AGI) of $100,000. Compute the following, assuming her itemized deductions total $5,000. Round your gross tax liability to the nearest dollar. If filing for the 2017 tax year: AGI $100,000 Less: larger of itemized or standard deduction - Less: Personal exemption - Taxable Income Gross Tax Liabiliy If filing for the 2018 tax year: AGI $100,000 Less: larger of itemized or standard deduction - Less: Personal exemption - Taxable Income Gross...

Adjusted gross income (AGI) sets the ceiling or the floor for certain deductions. Explain and illustrate...

Adjusted gross income (AGI) sets the ceiling or the floor for certain deductions. Explain and illustrate what this statement means.

. Calculate Adjusted gross income for Sarah Smith based on the following information: salary $200,000 child...

. Calculate Adjusted gross income for Sarah Smith based on the following information: salary $200,000 child support received $20,000 capital loss $5,000 Interest on State of California bonds $20,000 Interest on Federal treasury bonds $10,000 Sole proprietorship net income $40,000 Qualified unreimbursed employee moving expense $ 10,000 Partnership loss $2,000 Unemployment compensation $20,000 Sarah received a gift of $10,000 from her father. Contribution to Individual Retirement Account $1,000 Sarah's brother Samuel paid back a $10,000 loan from 2015 Contribution to...

Please Compute Gross Income, Adjusted Gross income, and Taxable income based on the following information below....

Please Compute Gross Income, Adjusted Gross income, and Taxable income based on the following information below. Salary $299,750.00 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...

Henry’s adjusted gross income is $50,000 in 2018. He donated a piece of artwork with a...

Henry’s adjusted gross income is $50,000 in 2018. He donated a piece of artwork with a basis of $10,000 and a fair market value (FMV) of $25,000. He has owned the artwork for 10 years. The charity that Henry donated the artwork to is a public charity and will display the art work in its art center. What is the maximum charitable deduction in 2018 that Henry can take? $0. $10,000. $15,000. $25,000

Please compute Gross Income and Adjusted gross income based on the following information Salary $187,750.00 Interest...

Please compute Gross Income and Adjusted gross income based on the following information 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...