LO.1, 2, 7 Soong, single and age 32, had the following items for the tax year 2012:
Question:
LO.1, 2, 7 Soong, single and age 32, had the following items for the tax year 2012:
• Salary of $30,000.
• Interest income from U.S. government bonds of $2,000.
• Dividends from a foreign corporation of $500.
• Sale of small business § 1244 stock on October 20, 2012, for $20,000. The stock had been acquired two years earlier for $65,000.
• Business bad debt of $4,000.
• Nonbusiness bad debt of $5,000.
• Sale of small business § 1244 stock on November 12, 2012, for $4,000. The stock had been acquired on June 5, 2012, for $800.
• Sale of preferred stock on December 4, 2012, for $40,000. The stock was acquired four years ago for $18,000.
• Total itemized deductions of $25,000 (no casualty or theft).
Step by Step Answer:
South Western Federal Taxation 2013 Individual Income Taxes
ISBN: 9781133189558
36th Edition
Authors: William Hoffman, James E. Smith