Question
Lisa and Collin are married. Lisa works as an engineer and earns a salary of $116,000. Collin works at a beauty salon and reported wages
Lisa and Collin are married. Lisa works as an engineer and earns a salary of $116,000. Collin works at a beauty salon and reported wages of $30,000 and tips of $15,000. Lisa received $500 of interest from corporate bonds and $250 of interest from a city of Chelsea municipal bond. Lisa acquired these bonds prior to her marriage to Collin. Collin's father passed away on April 14. He inherited cash of $50,000 and his baseball card collection, valued at $2,000. As beneficiary of his father's life insurance policy, Collin also received $150,000. The couple spent a weekend in Atlantic City in November and came home with gambling winnings of $1,200. Collin was injured in an accident when he tripped on a bad rug at a local store. He received $5,000 from the store for his medical bills. He also received $2,000 from the store for pain and suffering from the accident. Calculate Lisa and Collin's gross income for this year assuming they will file married joint.
PLEASE PROVIDE THE DETAILS OF WHICH ITEMS ARE TAXABLE AND WHICH ITEMS ARE NOT TAXABLE.
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