Compute the taxable income for 2013 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2010.
Salary.............................................................................................$ 80,000
Interest on bonds issued by City of Boston.....................................................3,000
Interest on CD issued by Wells Fargo Bank....................................................2,000
Cash dividend received on Chevron common stock...........................................2,200
Life insurance proceeds paid on death of Aunt Margie
(Aiden was the designated beneficiary of the policy) .....................................200,000
Inheritance received on death of Aunt Margie.............................................100,000
Jackson (a cousin) repaid a loan Aiden made to him in.......................................2008
(no interest was provided for) ...................................................................5,000
Itemized deductions (state income tax, property taxes on
residence, interest on home mortgage, charitable
contributions.......................................................................................9,000
Number of dependents (children, ages 17 and 18; mother-in-law, age 60) .....................3
Age.......................................................................................................43