Andrew, who is single, retired from his job this year. He received a salary of $24,000 for the portion of the year that he worked, tax-exempt interest of $3,000, and dividends from domestic corporations of $3,900. On August 1, he began receiving monthly pension payments of $1,200 and Social Security payments of $500. Assume an exclusion ratio of 40% for the pension. Andrew owns a duplex that he rents to others. He received rent of $9,000 and incurred $11,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job. Requirement Compute Andrew's adjusted gross income. Salary Dividend income Pension income (taxable portion) Rental income Social security income (taxable portion) Gross income Minus: Deductions for Adjusted gross income Rental expenses Adjusted gross income
Andrew, who is single, retired from his job this year. He received a salary of $24,000 for the portion of the year that he worked, tax-exempt interest of $3,000, and dividends from domestic corporations of $3,900. On August 1, he began receiving monthly pension payments of $1,200 and Social Security payments of $500. Assume an exclusion ratio of 40% for the pension. Andrew owns a duplex that he rents to others. He received rent of $9,000 and incurred $11,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job. Requirement Compute Andrew's adjusted gross income. Salary Dividend income Pension income (taxable portion) Rental income Social security income (taxable portion) Gross income Minus: Deductions for Adjusted gross income Rental expenses Adjusted gross income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Andrew,
who is single, retired from his job this year. He received a salary of
$24,000
for the portion of the year that he worked, tax-exempt interest of
$3,000,
and dividends from domestic corporations of
$3,900.
On
August
1, he began receiving monthly pension payments of
$1,200
and Social Security payments of
$500.
Assume an exclusion ratio of
40%
for the pension.
Andrew
owns a duplex that he rents to others. He received rent of
$9,000
and incurred
$11,000
of expenses related to the duplex. He continued to actively manage the property after he retired from his job.Requirement
Compute
Andrew's
adjusted gross income.|
Salary
|
||
|
Dividend income
|
|
|
|
Pension income (taxable portion)
|
|
|
|
Rental income
|
|
|
|
Social security income (taxable portion)
|
|
|
|
Gross income
|
|
|
|
Minus:
|
Deductions for Adjusted gross income
|
|
|
Rental expenses
|
|
|
|
Adjusted gross income
|
|
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