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Comprehensive Problem(TAX RETURN PROBLEM) Bill and Alice, husband and wife and both age 42, have the following transactions during 2020: a) They sold their old

Comprehensive Problem(TAX RETURN PROBLEM)

Bill and Alice, husband and wife and both age 42, have the following transactions during 2020:

a) They sold their old residence on Jan. 28,2020 for $380,000. The basis of their old residence, purchased in 2010, was $70,000. The selling expenses were $20,000. On May 17,2020, they purchased and moved into another residence costing $150,000.

b) On April 28,2020, they sold for $8,000 stock that Alice had received as a gift from her mother, who had purchased the stock for $10,000 in 2015. Her mother gave Alice the stock on November 15,2019, when the fair market value was $9,400.

c) On May 24,2020, Bill sold for $21,000 stock inherited from his father. His father died on June 14,2019, when the fair market value of the stock was $9,000. Bill's father paid $7,000 for the stock in 2013.

D) On Aug.11,2020, they sold a personal automobile for $8,000; basis of the automobile was $20,000 and it was purchased in 2017.

e) they had a carryover and other stock transaction as follows:

- LTCL carryover from 2019=($7,000)

-STCG=$2,000

-LTCG=$3,500

Bill salary was $40,000 and Alice had a salary of $28,000. They have no children. They paid state income taxes of $6,200, Sales tax of $400, federal income taxes of $15,000, and property taxes of $1,700. In addition, they contributed $16,000 interest on their home mortgage.

Computer Bill and Alice's Taxable Income for 2020.

please include formulas/notes.

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