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Compute the taxable income for 2021 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from
Compute the taxable income for 2021 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his spouse since 2019.
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Compute the taxable income for 2021 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his spouse since 2019. $80,000 3,000 2,000 2,200 200,000 Salary Interest on bonds issued by the City of Boston Interest on CD issued by Wells Fargo Bank Cash dividend received on Chevron common stock Life insurance proceeds paid on death of aunt (Aiden was the designated beneficiary of the policy) Inheritance received upon death of aunt Jackson (a cousin) repaid a loan Aiden made to him in 2010 (no interest was provided for) Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and charitable contributions) Number of dependents (children, ages 17 and 18, and mother-in-law, age 70) Age 100,000 5,000 9,700 3 43 Click here to access the standard deduction table to use, if required. a. Indicate whether the items are taxable or not taxable to Aiden. Cash dividend received on Chevron common stock Taxable Salary Taxable a. Indicate whether the items are taxable or not taxable to Aiden. Cash dividend received on Chevron common stock Taxable Salary Taxable Not taxable Not taxable Interest on bonds issued by City of Boston Life insurance proceeds Interest on a CD issued by Wells Fargo Bank Inheritance received upon the death of his aunt Proceeds from repayment of a loan Taxable Not taxable Not taxable b. What is Aiden's filing status? Head of household C. Should Aiden itemize his deductions or take the standard deduction? He should take the standard deduction. Feedback d. Aiden's taxable income in 2021 is $Step by Step Solution
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