422

Q.2- Mr. X and Mrs. Y are married and have two dependent children. P & Q They also fully support Mrs. Y's mother who lives with them and has no income. Their 2014 tax and other related information is as follows: (2 marks) Particulars Total salaries Bank account interest income Municipal bond interest income Value of employer provided medical insurance Value of premiums for $ 100000 of group term life insurance provided by employer Gift from XS parents Gain from the sale of qualified small business stock acquired in 2008 Total itemized deductions Dividend incomefrom ABC stock, Loan from XS parents Amount in $ 320,000 7,000 3,000 11,000 1,000 30,000 30,000 32,000 4,000 10,000 Required: Compute Mr. X and Mrs. Taxable income. (Show all calculations in proper /good form.)