1. 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

Compute As taxable income for the year.

I answered like the above table, but it was wrong.

Current Year 250,000 3,000 2,500 Salary Bank Interest Income Interest income on a bond issued by California Contributions to an IRA Adjusted Gross Income State and local income taxes Taxable income -1,200 254,300 -10,000 244,300