Question
Clark has a salary of $120,000 in 2023 that he earned as a doctor. In addition, Clark won an award for his charitable work providing
Clark has a salary of $120,000 in 2023 that he earned as a doctor. In addition, Clark won an award for his charitable work providing low-income children with medical services. Clark was nominated for the award and did not apply for the award. Clark is also not required to perform any future services as apart of the award. As a part of the award Clark receives $1,000,000, which he immediately donates to the local childrens hospital (a non-profit/charitable organization).\ \ Clark receives an award for his 20 years of service from his employer. Clark receives $400 cash as a part of the award.\ \ Clark also owns 20% of ABC Partnership. This year ABC earned ordinary income of $100,000. ABC also paid Clark a distribution of $10,000 as well.\ \ Clark also paid his ex-wife $10,000 in alimony in 2023. The alimony agreement was signed and executed before December 31, 2018.\ \ Clark is single, has no dependents, and takes a standard deduction. What is Clarks taxable income?\ \ The 2023 Standard Deduction for Single Individuals is $13,850. The 2023 Personal Exemption Amount is $0.
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