Question
Daniel, age 38, is single and has the following income and expenses in 2021: Salary income $60,000 Net rent income 6,000 Dividend income 3,500 Payment
Daniel, age 38, is single and has the following income and expenses in 2021:
| Salary income | $60,000 |
| Net rent income | 6,000 |
| Dividend income | 3,500 |
| Payment of alimony (divorce finalized in March 2019) | 12,000 |
| Mortgage interest on residence | 9,900 |
| Property tax on residence | 1,200 |
| Contribution to traditional IRA | 6,000 |
| Contribution to United Church | 2,100 |
| Loss on the sale of real estate (held for investment) | 2,000 |
| Medical expenses | 3,250 |
| State income tax | 2,00 |
| Federal income tax | 5,800 |
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Calculate Daniels AGI.
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Should Daniel itemize his deductions from AGI or take the standard deduction? Explain.
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
10th Edition
0131457349, 978-0131457348
