Your cousin, Antonia, who is 30 years old, single and a restaurant manager, heard that you have enrolled in the Masters of Taxation program at State University. She has asked you for help in preparing her 2018 tax return and provides you with the following information; Salary Alimony received (Pre-2018 agreement) Interest on GMAC Bonds Interest on City of New Orleans Bonds Interest on a bank savings account Berlinco, Inc. (a foreign corporation) (nonqualified dividend) Long-term capital gain Long-term capital loss Short-term capital gain Short-term capital loss Short-term capital loss carryover from 2017 Cash award from local United Way [1] Christmas turkey [2] Parking at office [2] Membership in professional organizations [2] Group term life insurance ($40,000 policy) [2] $50,000 3,600 800 1,300 600 100 2,000 (1,000) 5,000 (3,000) (5,000) 300 30 500 100 135 Unreimbursed medical expenses Medical insurance premiums Prescription drugs Dentist Emergency room fee Cold pills, aspirin, other over-the-counter medicine Rental fee for crutches $1,900 250 2,250 885 120 80 $5,600 4,150 1,700 4,800 500 1,950 Real estate taxes State income tax withheld State income tax paid in 2018 for 2017 tax return Home mortgage interest Home equity interest [3] Charitable contributions - cash Charitable contributions - clothes [4] Tax preparation fee for 2017 return, paid in 2018 Unreimbursed business expenses [5] Note: [1] Antonia kept the award from the United Way. [2] Benefits paid by the employer. [3] Antonia borrowed $12,000 and used the proceeds to purchase a new car. [4] The original cost of the clothes was $480 and the current FMV is $200 [5] Of the $888 in expenses, $180 are for meals and entertainment. 300 Compute Antonia's: adjusted gross income, taxable income, and tax liability. Your cousin, Antonia, who is 30 years old, single and a restaurant manager, heard that you have enrolled in the Masters of Taxation program at State University. She has asked you for help in preparing her 2018 tax return and provides you with the following information; Salary Alimony received (Pre-2018 agreement) Interest on GMAC Bonds Interest on City of New Orleans Bonds Interest on a bank savings account Berlinco, Inc. (a foreign corporation) (nonqualified dividend) Long-term capital gain Long-term capital loss Short-term capital gain Short-term capital loss Short-term capital loss carryover from 2017 Cash award from local United Way [1] Christmas turkey [2] Parking at office [2] Membership in professional organizations [2] Group term life insurance ($40,000 policy) [2] $50,000 3,600 800 1,300 600 100 2,000 (1,000) 5,000 (3,000) (5,000) 300 30 500 100 135 Unreimbursed medical expenses Medical insurance premiums Prescription drugs Dentist Emergency room fee Cold pills, aspirin, other over-the-counter medicine Rental fee for crutches $1,900 250 2,250 885 120 80 $5,600 4,150 1,700 4,800 500 1,950 Real estate taxes State income tax withheld State income tax paid in 2018 for 2017 tax return Home mortgage interest Home equity interest [3] Charitable contributions - cash Charitable contributions - clothes [4] Tax preparation fee for 2017 return, paid in 2018 Unreimbursed business expenses [5] Note: [1] Antonia kept the award from the United Way. [2] Benefits paid by the employer. [3] Antonia borrowed $12,000 and used the proceeds to purchase a new car. [4] The original cost of the clothes was $480 and the current FMV is $200 [5] Of the $888 in expenses, $180 are for meals and entertainment. 300 Compute Antonia's: adjusted gross income, taxable income, and tax liability