10. Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2019, Ed and Jane realized the following items of income and expense: Item Amount Eds Salary $55,000 Janes Salary 34,400 Interest income on their saving account 600 Municipal bond interest income 400 Lottery winning 6,000 Dividend received from GE stocks 500 Jane received alimony from her ex 1000 Jane received gift from her aunt 3000 Alimony paid to Eds ex-wife (7,000) Child support paid to Eds ex-wife (5,000) Real property tax (10,000) Home mortgage interest expenses (6,000) Gambling loss (4500) Their employers withheld $1,800 in federal income taxes and $800 state income tax from their paychecks (in the aggregate). Please answer the following questions: a. What is the couples gross income? b. What is the couples adjusted gross income (AGI)? c. What is the couples itemized deduction? d. What is the couples taxable income?

9. Brittany, who is single, cares for her father Raymond. Brittany pays the bills relating to Raymond's home. She also buys groceries and provides the rest of his support. Raymond has no gross income. Brittany received $45,000 of salary from her employer during the year. Brittany reports $3,000 of itemized deductions. What is Brittany's taxable income?

7. During 2019, Marvin had the following transactions: Salary $50,000 Bank loan (proceeds used to buy personal auto) 10,000 Alimony paid 6,000 Child support paid 12,000 Gift from aunt Gain from sale of city of Bloomington bonds 5,000 20,000 Interest from City of Bloomington Bonds 500 Interest received on the U.S. Government bonds 1,500 Interest received on corporate (GE company) bonds 350 Lottery winnings 500 Life insurance proceed after her grandmother died 150,000 Calculate Marvins AGI:

11. Jenna (age 50) files single and reports AGI of $40,000. This year she has incurred the following medical expenses: Dentist charges $90 Physician's fees 2,800 Cosmetic surgery 400 Cost of eyeglasses 250 Hospital charges 1,330 Prescription drugs 240 Over-the-counter drugs 75 Medical insurance premiums (not through an exchange) 1,200 Calculate the amount of deductible medical expenses that will be included with Jenna's other itemized deductions.

12. Amy sued Paul who caused the car accident. Amy received the following settlement: Physical damage to her arms caused by the accident $5,000 Loss of income while her physical injuries were healing $3,000 Medical expenses for treatment of injury $7,000 Punitive Damages $10,000 What is Amys gross income?