a.Compute the taxable income for 2020 for Emily on the basis of the following information. Her filing status is single.

Salary	$85,000
Interest income from bonds issued by Xerox	1,100
Alimony payments received (divorce occurred in 2014)	6,000
Contribution to traditional IRA	6,000
Gift from parents	25,000
Short-term capital gain from stock investment	2,500
Amount lost in football office pool	500
Age	40

b.Compute the taxable income for 2020 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2018.

Salary	$ 80,000
Interest on bonds issued by City of Boston	3,000
Interest on CD issued by Wells Fargo Bank	2,000
Cash dividend received on Chevron common stock	2,200
Life insurance proceeds paid upon death of aunt (Aiden was the designated beneficiary of the policy)	200,000
Inheritance received upon death of aunt	100,000
Jackson (a cousin) repaid a loan Aiden made to him in 2014 (no interest was provided for)	5,000
Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and charitable contributions)	9,700
Number of dependents (children, ages 17 and 18, and mother-in-law, age 70)	3
Age	43