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Frank, age 35, and Joyce, age 34, are married and file a joint income tax return for 2015. Their salaries for the year total $84,000 and they have taxable interest income of $3,900. They have no deductions for adjusted gross income. Their itemized deductions are $12,700. Frank and Joyce do not have any dependents.

a. What is the amount of their adjusted gross income?

b. What is their deduction for personal exemptions? c. What is the amount of their taxable income?

13. Nicoula is a server at a La Jolla restaurant. Nicoula received $1,200 in unreported tips during 2015 and owes Social Security taxes on these tips. Her total income for the year, including the tips, is $4,300. Is Nicoula required to file an income tax return for 2015 ? Why or why not?

. Martin sells a stock investment for $26,000 on August 2, 2015. Martins adjusted basis in the stock is $15,000.

a. If Martin acquired the stock on November 15, 2014, calculate the amount and the nature of the gain or loss.

b. If Martin had acquired the stock on September 11, 2013, calculate the amount and nature of the gain or loss.

3. Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2015:

Stock	Date Purchased	Date Sold	$Sales Price	$Cost Basis
4,000 shares Green Co.	06/04/04	08/05/15	12,000	3,000
500 shares Gold Co.	02/12/15	09/05/15	54,000	62,000
5,000 shares Blue Co.	02/04/05	10/08/15	18,000	22,000
100 shares Orange Co.	11/15/14	07/12/15	19,000	18,000

None of the stock is qualified small business stock. Calculate Charus net capital gain or loss using Schedule D and Form 8949 on Pages 8-43 through 8-46.

4. 4. Jocastaownsanapartmentcomplexthatshepurchased6yearsagofor$750,000.Jocasta has made $60,000 of capital improvements on the complex, and her depreciation claimed on the building to date is $137,500. Calculate Jocastas adjusted basis in the building

5. Chrissy receives 200 shares of Chevron Texaco stock as a gift from her father. The stock cost her father $9,000 10 years ago and is worth $10,500 at the date of the gift.

a. If the stock is sold for $12,500, calculate the amount of the gain or loss on the sale.

b. If the stock is sold for $4,600, calculate the amount of the gain or loss on the sale.