the ezell firm is trying to decide whether to convert its sales staffs pay to commission basis instead of the fixed salaries

Taxation

Greg lives in New York, is a widower (his wife died in 2016), and has one child. His child, Jana, is 40 and lives with her family in California. Greg retired from his job in 2015, but continues to consult. In 2018, he had the following items of income: .Taxable corporate bond interest income .Municipal bond interest (exempt interest) $26,000 9,000 12,000 10,000 9,000 Dividends (qualifying) .Consulting fees Social security benefits Greg rents his apartment, has no significant medical expenses, and pays a modest amount of state taxes. Therefore, he will take the standard deduction rather than itemize. He does have records for the following items: 900 1,500 .Investment expenses Expenses related to his consulting business Greg also had the following gains and losses in 2018 .Loss on the sale of 500 shared of Erc, Inc. (stock was held for three years) (2,000) (5,000) 1,200 Loss on sale of personal auto . Gain on sale of ABC Inc. Stock . Gain on the sale of unimproved land in Ipswich, Massachusetts. He held this land as an investment 35,000 Determine the following for Greg's 2018 return: 1. Greg's Schedule C income. 2. Greg's adjusted gross income. 3. Greg's taxable income. 4. Greg's 2018 tax liability