Accounting 240 Income Tax Homeowork Problem I. Dwayne Johnson is single and living alone. He had expenditures for the year as follows:

Homework Problem I Dwayne Johnson is single and living alone. He had income and expenditures for the year as follows. $70,000 Salary income (from W-2) Interest income from: 1,200 3,000 20,000 5, 000 1,500 Bank account Maricopa County bonds Inheritance from grandparent Contribution to Roth I.R.A. Interest expense on student loan Potential Itemized Deductions: Interest expense on home mortgage Interest expense on car loan Interest expense on credit cards Property taxes paid (car and home) Charitable contributions 6,000 1,100 300 2,700 3,000 9,000 2,000 Federal income tax withhelcd State income tax withheld Compute the amount of: a) taxable income, b) income taxes, and c) amount of tax to be paid (refunded) Note: It is not acceptable to submit this page as homework. Prepare answer, in good form, on a separate sheet. IRS ACC 212 / 240 Income Taxes Page 16