Computation of Taxable Income: Mike and Lisa are married and file jointly. In 2017, Mike earned a salary of $50,000. Lisa is self-employed, earning a gross income of $55,000 with business expenses of $26,000. Each contributed $5,500 to a deductible IRA. Their itemized deductions total $14,000. Compute their gross income, adjusted gross income (AGI), and taxable income, assuming they have a dependent son. Compute without considering self-employment tax.
Computation of Taxable Income: Mike and Lisa are married and file jointly. In 2017, Mike earned a salary of $50,000. Lisa is self-employed, earning a gross income of $55,000 with business expenses of $26,000. Each contributed $5,500 to a deductible IRA. Their itemized deductions total $14,000. Compute their gross income, adjusted gross income (AGI), and taxable income, assuming they have a dependent son. Compute without considering self-employment tax.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 50P
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General accounting
Transcribed Image Text:Computation of Taxable Income: Mike and Lisa are
married and file jointly. In 2017, Mike earned a salary
of $50,000. Lisa is self-employed, earning a gross
income of $55,000 with business expenses of $26,000.
Each contributed $5,500 to a deductible IRA. Their
itemized deductions total $14,000. Compute their gross
income, adjusted gross income (AGI), and taxable
income, assuming they have a dependent son. Compute
without considering self-employment tax.
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