Problem 3-28 (LO. 1, 8)

The following information applies to Emily for 2023. Her filing status is single.

Salary$85,000Interest income from bonds issued by Xerox1,100Alimony payments received (divorce occurred in 2014)6,000Contribution to traditional IRA6,500Gift from parents25,000Short-term capital gain from stock investment2,500Amount lost in football office pool (gambling loss)500Age40

Emily has no gambling winnings this year.

Click here to access the Components of the tax formula to use.

Indicate whether the following items are taxable or nontaxable to Emily.

SalaryTaxableNot taxableTaxableGift from parentsTaxableNot taxableNot taxableAlimony payments receivedTaxableNot taxableTaxableShort-term capital gain from stock investmentTaxableNot taxableTaxableInterest income from bonds issued by XeroxTaxableNot taxableTaxable

Identify whether the items are deductible (fully or partially) by Emily.

Amount lost in football office poolDeductibleNot deductibleNot deductibleContribution to a traditional IRADeductibleNot deductibleDeductible

Emily's taxable income in 2023 is $fill in the blank 8