4. Sandi, files her 2020 taxes as head of household taking her two children, ages 14 and 11, as dependents. Her 2020 wages were $95,000. Her divorce was finalized in 2019 and per the settlement she is required to pay $1,500 of alimony per month to her ex-spouse. She has taxable interest income of $2,000, qualified dividends of $12,000 and a long-term capital gain on stocks she sold in 2020 of $10,000. In addition, on December 31, 2020 she sold her residence for $400,000. She had purchased the house in June of 2017 for $225,000 and has lived in it since. Compute Sandi's taxable income and income tax liability for 2020?

4. Sandi, files her 2020 taxes as head of household taking her two children, ages 14 and 11, as dependents. Her 2020 wages were $95,000. Her divorce was finalized in 2019 and per the settlement she is required to pay $1,500 of alimony per month to her ex-spouse. She has taxable interest income of $2,000, qualified dividends of $12,000 and a long-term capital gain on stocks she sold in 2020 of $10,000. In addition, on December 31, 2020 she sold her residence for $400,000. She had purchased the house in June of 2017 for $225,000 and has lived in it since. Compute Sandi's taxable income and income tax liability for 2020?

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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