. You have a client, Anna. Anna, who is 38 years old and has a 5-year-old daughter (Suzy), divorced from her husband in 2017. In 2020; you picked her up as a client. She has the following forms of income. a. W-2 from her law firm for $140,000, before deductions b. Contributions to her 401k plan for $10,000 c. Charitable Contributions of $500 for the year (she will have a standard deduction) d. She received a gift from her father of $25,000, where the exclusion was $15,000 this year. e. Her aunt died in 2020, and Anna received an inheritance of $25,000, with instructions to provide the inheritance for her daughters schooling. f. She received $20,000 alimony, with $6000 of it being designated as dropping off, when Suzy turns 18, or 24, if she goes to college.

What is her gross income in 2020 to be reported on Line 9 of Schedule 1, Part I?

What is her Total Adjustments as to be shown on Line 22 of Schedule 1, Part II?

2. James owns his own small business and makes about $200,000 per year in taxable income. He is single and has an opportunity to earn an additional $50,000 in net income from the sale of additional inventory, which cost $24,000 to produce. He has a marginal tax rate of 32% and an effective tax rate of 21% (after deductions unaffected by this transaction).

a. Without regard to the QBID what are the overall tax effects of receiving this additional, if he should take it.

b. If he refuses to take the job and decides to donate the related inventory to a local childrens hospital, what kind of charitable deduction could he claim?