1)

Compute the taxable income and tax liability for Madison for 2017 based on

the following information. She is married, but has not seen or heard from her

husband in 5 years. She owns her home and paid $3,000 in property taxes and $5,000 in home mortgage interest in 2017.

Salary $65,000 Interest Income from City of Olathe Bonds $2,100 Interest on CD from Bank of America $2,600

Dividend from GE stock (she has owned stock for three years) $3,200 Life Insurance paid on death of Grandfather (Madison was the beneficiary of the policy) $50,000 Niece repaid a loan to her from 2010 $15,000 Itemized deductions (mortgage interest and property taxes) $8,000 Dependents (children ages 11 and 9) Age 35