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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
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 |
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