John and Georgia are a married couple with two dependent sons. Their salaries total $130,000. They have

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John and Georgia are a married couple with two dependent sons. Their salaries total $130,000. They have a capital loss of $8,000 and tax-exempt interest income of $1,000. They paid home mortgage interest of $10,000, state income taxes of $4,000, and medical expenses of $3,000, and they made charitable contributions of $5,000. 
a. Compute their adjusted gross income.
b. Compute their total itemized deductions.
c. What is the amount of their personal exemptions?
d. Compute their taxable income.
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Federal Taxation 2016 Comprehensive

ISBN: 9780134104379

29th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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