Problem 1-4 The Tax Formula for Individuals, A Brief Overview of Capital Gains and Losses (LO 1.3, L.O. 1.8)

In 2018, Lou has a salary of $53,300 from her job. She also has interest income of $1,600 and dividend income of $400. Lou is single and has no dependents. During the year, Lou sold silver coins held as an investment for a $7,000 loss.

Table for the standard deduction

Filing Status	2018 Standard Deduction
Single	$12,000
Married, filing jointly	$24,000
Married, filing separately	$12,000
Head of household	$18,000
Qualifying widow(er)	$24,000

Calculate the following amounts for Lou:

a. Adjusted gross income	$
b. Standard deduction	$
c. Exemption	$
d. Taxable income	$