According to the contributions of Puerto Rico: Indicate the items of income that are part of the gross income. Indicates income exclusions. Calculate the adjusted gross income. Identifies if the taxpayer has interest income and explains what the tax treatment is in this regard. List the exemptions to which the taxpayer is entitled. Case 2: Carmelo Morales and Carmen Flores Carmelo Morales was born on January 9, 1968, is a teacher and is married. He had a salary of $42,000 and a withholding tax of $6,000. In addition, he obtained a $5,000 individual retirement account (IRA). Carmelo also received dividends of $5,000 from an investment made in a company. His wife, Carmen Flores, was born on March 22, 1970, works as a secretary and had an income of $30,000 in the taxable year. The couple has no children, has a joint bank account, and received $7,500 in interest from the bank. Carmelo's mother lives with him and is completely dependent on her son, since the woman is disabled and has no income.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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According to the contributions of Puerto Rico:
Indicate the items of income that are part of the gross income.
Indicates income exclusions.
Calculate the adjusted gross income.
Identifies if the taxpayer has interest income and explains what the tax treatment is in this regard.
List the exemptions to which the taxpayer is entitled.

Case 2: Carmelo Morales and Carmen Flores
Carmelo Morales was born on January 9, 1968, is a teacher and is married. He had a salary of $42,000 and a withholding tax of $6,000. In addition, he obtained a $5,000 individual retirement account (IRA). Carmelo also received dividends of $5,000 from an investment made in a company. His wife, Carmen Flores, was born on March 22, 1970, works as a secretary and had an income of $30,000 in the taxable year. The couple has no children, has a joint bank account, and received $7,500 in interest from the bank. Carmelo's mother lives with him and is completely dependent on her son, since the woman is disabled and has no income.

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