Calculate Adjusted gross income for Sarah Smith based on the following information:

salary $200,000

child support received $20,000

capital loss $5,000

Interest on State of California bonds $20,000

Interest on Federal treasury bonds $10,000

Sole proprietorship net income $40,000

Qualified unreimbursed employee moving expense $ 10,000

Partnership loss $2,000

Unemployment compensation $20,000

Sarah received a gift of $10,000 from her father.

Contribution to Individual Retirement Account $1,000

Sarah's brother Samuel paid back a $10,000 loan from 2015

Contribution to health savings account $1,000

Penalty for early withdrawal from a timed savings account $1,000.

Rental income $20,000

Sarah found a ring with a fair market value of $2,000 on the bus.

Sarah won $1,000 in scratch of lotto

Sarah won $500 in a baking contest.

Sarah had qualified student loan interest of $1,000

Sarah received alimony of $40,000

Sarah received a legal settlement of $20,000 in payment for a broken ankle she incurred during a ferris wheel accident.

Sarah received life insurance payment of $100,000 due to the death of her great grandmother.

Sarah inherited $50,000 from her great aunt.

II Prepare a study outline for the first exam The first exam will be held on Monday October 16, 2017

1. Briefly describe the federal tax legislation process

2. Describe the three basic types of tax regulations

3. Describe the four courts which hear tax cases

4 Describe Adam Smith's Cannons of taxation

5. Prepare the tax formula

6. be able to calculate adjusted gross income.