Exercise 4-26 (Algorithmic) (LO.4) Determine the taxable amount of Social Security benefits for the following situations. If required, round your answers to the nearest dollar. If an amount is zero, enter "o". a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $43,000, no tax-exempt interest, and $15,050 of Social Security benefits. As a result, 11,546 of the Social Security benefits are taxable. b. Assume Erwin and Eleanor have adjusted gross income of $17,400, no tax-exempt interest, and $19,140 of Social Security benefits. As a result, o of the Social Security benefits are taxable. c. Assume Erwin and Eleanor have adjusted gross income of $119,500, no tax-exempt interest, and $17,925 of Social Security benefits. As of the Social Security benefits are taxable. a result, Feedback Check My Work If a taxpayer's income exceeds a specified base amount as much as 85 percent of Sodal Security retirement benefits must be included in gross income. The taxable amount of benefits is determined through the application of one of two formulas that utilize a unique measure income-modified adjusted gross income (MAGI). Exercise 4-20 (Algorithmic) (LO. 2) On January 1, 2020, Kunto, a cash basis taxpayer, pays $85,060 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives $92,000. In your computations, round any amounts to the nearest dollar. a. Compute Kunto's gross income from the certificate for 2020. 3,402 b. Compute Kunto's gross income from the certificate for 2021. 10,478 x Feedback Check My Work Lenders frequently make loans that require a payment at maturity of more than the amount of the original loan. The difference betwe amount due at maturity is actually interest but is referred to as original issue discount