Alexandra, a cash basis taxpayer who turned 58 in 2022, takes care of her elderly parents and provides more than half of the support to them. She purchased an annuity from an insurance company for $75,000. In return, she is to receive $600 per month for life. Refer to Ordinary Life Annuities: One Life - Expected Return Multiples. In addition, Alexandra's earned $55,000 salary and had interest income of $4,500 from City of Albuquerque bonds. Her medical expenses for the year are $7,460 and her charitable contributions were $375. What is the Alexandra's taxable income for year 2022?
Alexandra, a cash basis taxpayer who turned 58 in 2022, takes care of her elderly parents and provides more than half of the support to them. She purchased an annuity from an insurance company for $75,000. In return, she is to receive $600 per month for life. Refer to Ordinary Life Annuities: One Life - Expected Return Multiples. In addition, Alexandra's earned $55,000 salary and had interest income of $4,500 from City of Albuquerque bonds. Her medical expenses for the year are $7,460 and her charitable contributions were $375. What is the Alexandra's taxable income for year 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please solve within 30 minutes.
Transcribed Image Text:Alexandra, a cash basis taxpayer who turned 58 in
2022, takes care of her elderly parents and provides
more than half of the support to them. She purchased
an annuity from an insurance company for $75,000. In
return, she is to receive $600 per month for life. Refer
to Ordinary Life Annuities: One Life - Expected
Return Multiples. In addition, Alexandra's earned
$55,000 salary and had interest income of $4,500
from City of Albuquerque bonds. Her medical
expenses for the year are $7,460 and her charitable
contributions were $375.
What is the Alexandra's taxable income for year 2022?
Instructions: Round your answer to the nearest dollar,
and do not include cents, commas or dollar sign. For
example: if the answer is 10000 simply write 10000
(and NOT $10,000, $10,000.00 or 10000.00)
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