4) Your uncle visited you on the last holiday. You had a conversation over dinner with him on how much you have learned at CCRI. He was very impressed with you, and in January he called to ask if you could help him file his taxes. Your uncle earned wages of $86,400, won $350,000 on a scratch ticket, and contributed $50,000 to a tax-deferred savings plan. He is entitled to a personal exemption of $4050 and a standard deduction of $6300. The interest on his home mortgage was $9200 and he contributed $95,000 to charity. Now that you know this information, your task is to compute the following: Gross income, the adjusted gross income, and taxable income. Base the taxable income on the greater of a standard deduction or an itemized deduction.

4) Your uncle visited you on the last holiday. You had a conversation over dinner with him on how much you have learned at CCRI. He was very impressed with you, and in January he called to ask if you could help him file his taxes. Your uncle earned wages of $86,400, won $350,000 on a scratch ticket, and contributed $50,000 to a tax-deferred savings plan. He is entitled to a personal exemption of $4050 and a standard deduction of $6300. The interest on his home mortgage was $9200 and he contributed $95,000 to charity. Now that you know this information, your task is to compute the following: Gross income, the adjusted gross income, and taxable income. Base the taxable income on the greater of a standard deduction or an itemized deduction.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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