Question
1. Assume B has the same items of income and expense as in problem 2 above, with the following difference. Instead of having $!5,000 of
1. Assume B has the same items of income and expense as in problem 2 above, with the following difference. Instead of having $!5,000 of state and local income taxes of $15,000, B only has state and local income taxes of $10,000, but B has deductible business expenses of $5,000. While the total amount of net income is the same for A and B, do they have the same amount of taxable income? (problem above is stated below)
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A is single and has the following items of income and expense:
Salary $250,000
Bank interest income $3,000
Interest income on a bond issued by California $2,500
Contributions to an IRA (non- Roth) $1,200
State and local income taxes $15,000
Gambling losses $7,500
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