LO.1, 2, 3, 4 Compute the taxable income for 2010 in each of the following independent situations:
Question:
LO.1, 2, 3, 4 Compute the taxable income for 2010 in each of the following independent situations:
a. Drew and Meg, ages 40 and 41, are married and file a joint return. In addition to three dependent children, they have AGI of $65,000 and itemized deductions of
$12,000.
b. Sybil, age 40, is single and supports her dependent parents who live with her and also supports her grandparents (mother’s parents) who are in a nursing home. She has AGI of $80,000 and itemized deductions of $8,000.
c. Scott, age 49, is an abandoned spouse. His household includes three unmarried stepsons who qualify as his dependents. He has AGI of $75,000 and itemized deductions of $9,500.
d. Amelia, age 33, is a surviving spouse and maintains a household for her four dependent children. She has AGI of $58,000 and itemized deductions of $10,200.
e. Dale, age 42, is divorced but maintains the home in which he and his daughter, Jill, live. Jill is single and qualifies as Dale’s dependent. Dale has AGI of $64,000 and itemized deductions of $9,900.
Step by Step Answer:
South Western Federal Taxation 2011 Taxation Of Business Entities
ISBN: 9780538498616
14th Edition
Authors: James E. Smith, William A. Raabe, David M. Maloney