Your client, Bob McDonald, has written you about his tax situation. Please assume that gross income is $172,900 (which consists only of salary) for purposes of this problem

December 31, 2016

Dear ***** *****, CPA:

Hi, its Bob McDonald again. I understand you need some more information from me in order to complete my tax return. Please let me know what information you need and Ill be happy to provide it.

I moved this year due to taking a job at SwissLog. The move was in late January and I worked my job at SwissLog for the rest of the year. I moved 650 miles away from my old house but I still live in the same state. I left a little bit early to go on a house-hunting trip that cost me a total of $450. I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65. We spent $35 on meals on the way to our new home. Oh yeah, I took my little boy to a movie on the way and that cost $20.

Can you believe Im still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year.

Since SwissLog (my employer) never started a retirement plan, I decided I should probably start saving for my golden years. I contributed $3,000 to what the bank referred to as a regular IRA (or was it a REM?). Oh yeah. I also did a little investing this year. I bought a limited partnership interest in IGlow, Ltd. for $10,000. I thought it was going to be a real winner, but this year they took a bath. My portion of the loss was $8,000. Well, at least I did not actually do any work for IGlow, and I get the tax deduction - right?

That should be all the information you need right now. Please calculate my adjusted gross income and complete page 1 of Form 1040. Youre still doing this for free, right?

Sincerely,

Bob

Required: calculate Bobs AGI and complete the 1^st page of the 1040 form (forms can be downloaded from the IRS website).