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Please help with this tax question! For individual income tax class Ms. Smith is a 67 year-old unmarried cash-basis taxpayer. She resides in Detroit and
Please help with this tax question! For individual income tax class
Ms. Smith is a 67 year-old unmarried cash-basis taxpayer. She resides in Detroit and provides all of the support of her 90 year old unmarried mother who lives in an apartment in another nearby city in Michigan. Ms Smith provides all of the cost of keeping up her home and her mothers apartment. Ms Smiths mother only source of income ins a taxable pension of $8,800, but it is put in the bank and not used for support. During 2017, Ms Smith has the following transactions: Wages received from ABC company of $70,000 Interest earned on savings account but not withdrawn: $200 Received $4000 proceeds from sale of ABC stock held for 9 months. She paid $2000 for the stock Received unemployment comp after being laid off from her job at ABC company due to a slow economy: $7000 Won a TV worth $500 in a magazine publisher contest that she entered Ms. Smith paid alimony to her ex-husband in the amount of $6000 as required by the divorce settlement Determine Ms. Smiths gross income, adjusted gross income and taxable income for 2017. Assume she will use the applicable standard deductionStep by Step Solution
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