A.
There are three types of taxable income; 1. active, 2.
portfolio, 3. passive. Describe each (in
your own words) and make sure you understand the tax
implications of these incomes.
B.
Debra Ferguson received the items and amounts of income shown
below during 2016. Help her calculate, (a) her
gross income and (b) that portion (dollar
amount) of her income that is tax
exempt.
Salary
$33,500
Dividends
800
Gift from
mother
500
Child support from
ex-husband
3,600
Interest on savings...