Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I just need help with D thank you Problem 9-12 Compute the taxable income for 2020 for Aiden on the basis of the following information.

image text in transcribedimage text in transcribedI just need help with D thank you

Problem 9-12 Compute the taxable income for 2020 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2018. Salary Interest on bonds issued by the City of Boston Interest on CD issued by Wells Fargo Bank $80,000 3,000 2,000 2,200 Cash dividend received on Chevron common stock 200,000 100,000 5,000 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) 9,700 3 Age 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 Taxable common stock Salary Taxable Interest on bonds issued by City of Boston Not taxable Life insurance proceeds Not taxable Interest on a CD issued by Wells Fargo Bank Taxable Inheritance received upon the death of his aunt Not taxable Proceeds from repayment of a loan Not taxable b. What is Aiden's filing status? Head of household 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 2020 is $ 62,350 X. Feedback Problem 9-12 Compute the taxable income for 2020 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2018. Salary Interest on bonds issued by the City of Boston Interest on CD issued by Wells Fargo Bank $80,000 3,000 2,000 2,200 Cash dividend received on Chevron common stock 200,000 100,000 5,000 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) 9,700 3 Age 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 Taxable common stock Salary Taxable Interest on bonds issued by City of Boston Not taxable Life insurance proceeds Not taxable Interest on a CD issued by Wells Fargo Bank Taxable Inheritance received upon the death of his aunt Not taxable Proceeds from repayment of a loan Not taxable b. What is Aiden's filing status? Head of household 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 2020 is $ 62,350 X. Feedback

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money, Banking, Financial Markets & Institutions

Authors: Michael Brandl

2nd Edition

1337904821, 9781337904827

More Books

Students also viewed these Finance questions

Question

4. Explain how to price managerial and professional jobs.

Answered: 1 week ago