Problem 4-15 points In 2018 James (age 35) moved from Chicago to San Francisco after getting a new job. He spent $7.,000 in shipping his goods from Chicago to San Francisco. James drove across country to his new home and spent $770 on gas, $1,200 on accomadation and $385 on food during the trip. Hils company relmbursed him $5,o0o Salary from Google in Chicago 250,000 Part of the reason he left Chicago was that his company had sent him to ldaho for 3 months to oversee operations there. He returned to Chicago every weekend. Cost of flying home each weekend was $350, and if he had stayed in Idaho the costs would have been $430 Salary from Apple in San Francisco Received dividend income from Microsoft of Received life insurance proceeds from the death of his uncle 400,000 60,000 12,000 16,000 Received a gift from his aunt Made a gift to his friend In his divorce from his wife (who did not want to move to Californial, James received stocks with a basis of $700,000 and a FMV of $800,000 Paid unreimbursed job hunting expenses of Paid Chicago income taxes of Paid California income taxes of (21,000) (25,000) (40,000) 500,000 In December, James sold the bonds (received in the divorce) to his brother for 3 months later his brother sold the stocks for 900,000 James also rented out his vacation home for 10 days 30,000 James was injured in a car accident when he moved to San Francisco and sued the driver. He received the following settlement Physical injuries Loss of income Punitive damages 200,000 20,000 40,000 What is James' adjusted gross income for the year? What is James' taxable income for the year? What is James' net tax liability for the vear?ore AMTl A B C Problem 4-15 points In 2018 James (age 35) moved from Chicago to San Francisco after getting a new job. He spent $7.,000 in shipping his goods from Chicago to San Francisco. James drove across country to his new home and spent $770 on gas, $1,200 on accomadation and $385 on food during the trip. Hils company relmbursed him $5,o0o Salary from Google in Chicago 250,000 Part of the reason he left Chicago was that his company had sent him to ldaho for 3 months to oversee operations there. He returned to Chicago every weekend. Cost of flying home each weekend was $350, and if he had stayed in Idaho the costs would have been $430 Salary from Apple in San Francisco Received dividend income from Microsoft of Received life insurance proceeds from the death of his uncle 400,000 60,000 12,000 16,000 Received a gift from his aunt Made a gift to his friend In his divorce from his wife (who did not want to move to Californial, James received stocks with a basis of $700,000 and a FMV of $800,000 Paid unreimbursed job hunting expenses of Paid Chicago income taxes of Paid California income taxes of (21,000) (25,000) (40,000) 500,000 In December, James sold the bonds (received in the divorce) to his brother for 3 months later his brother sold the stocks for 900,000 James also rented out his vacation home for 10 days 30,000 James was injured in a car accident when he moved to San Francisco and sued the driver. He received the following settlement Physical injuries Loss of income Punitive damages 200,000 20,000 40,000 What is James' adjusted gross income for the year? What is James' taxable income for the year? What is James' net tax liability for the vear?ore AMTl A B C
