LO.1, 2, 3, 4 Compute the taxable income for 2010 for Mattie on the basis of the following information. Mattie ismarried but has not seen or heard from her husband since 2008.

Salary $ 60,000 Interest on bonds issued by AT&T Corporation 3,000 Interest on CD issued by Wells Fargo Bank 2,000 Cash dividend received on Chevron common stock 2,200 Life insurance proceeds paid on death of aunt (Mattie was the designated beneficiary of the policy) 10,000 Inheritance received on death of aunt 200,000 Casey (a cousin) repaid a loan Mattie made to him in 2007

(no interest was provided for) 5,000 Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, charitable contributions) 10,200 Number of dependents (children, ages 17 and 18) 2 Age 40