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From the following details calculate the Taxable Income of Mr. Johnson under U.S. Tax Laws.                           &n

From the following details calculate the Taxable Income of Mr. Johnson under U.S. Tax Laws.                                                                                                                   

Gross Income

$ 180,000

Gross Income includes Life Insurance Proceeds of

$ 30,000

Deductions for AGI

$ 20,000

Charitable Contribution

$ 2000

Medical Expenses

$ 2500

Personal Casualty & Theft Losses

$ 800

Standard Deduction

$ 6100

Dependency Exemption (Qualified)

$ 3400

2. As per the U.S Tax Laws, answer the following questions. Explain your answer by giving the reasons.                                                                                                                 

A. Mr. Calvin has a land valued at $ 45,000 in the beginning of the year and the value of the land appreciated to $ 60,000 at the end of the year. Will the increase in the value of land be taxed? If not, why?

B. Mr. Peter has saved an amount of $ 600 per month by washing his own car. In this way he has saved an amount of $ 7200 during the taxable year. What amount of his saving in this way is taxable? If not, why?

C. Mr. Anderson sold his property for 120,000 to Mr. David. The cost price of the property sold was $ 100,000. What amount of the property sold is taxable and what amount is not taxable. Explain by giving reason.

D. Mr. Paul has a life insurance policy of the sum assured of $ 1,500,000 for a period of 20 years. He paid annual premium of $ 50,000 for 12 years and then surrendered the policy for $ 850,000. What amount of the Life Insurance Proceeds is taxable? Explain why?

3. An extra benefit supplementing an employee's money wage or salary is called Fringe Benefit. Examples are a company’s car, private health care, etc. What Fringe Benefits do you get from your employer in your organizations? Describe in detail.                       

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ekkarill92 answered 1 year ago
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