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Morgan (age 45) is single and provides more than 50% of the support of Rosalyn (a family friend), Flo (a niece, age 18), and Jerold
Morgan (age 45) is single and provides more than 50% of the support of Rosalyn (a family friend), Flo (a niece, age 18), and Jerold (a nephew, age 18). Both Rosalyn and Flo live with Morgan, but Jerold (a French citizen) lives in Canada. Morgan earns a salary of $95,000, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used for vacations. She has $8, 200 in itemized deductions. The personal exemption amount for is $4, 050. Click here to access the standard deduction table to use if required. a. Who qualifies as a dependent of Morgan for the dependency exemption? b. Morgan's taxable income is $ 88, 800. c. Using the Tax Rate Schedules (click here), tax liability for Morgan is $ 11, 238 for. (Do not round intermediate tax computation but if required, round your final answer to the nearest whole dollar.)
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