Compute the taxable income for 2021 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2019. Salary $80,000 Interest on bonds issued by City of Boston 3,000 Interest on CD issued by Wells Fargo Bank 2,000 Cash dividend received on Chevron common stock 2,200 Life insurance proceeds paid upon death of aunt (Aiden was the designated beneficiary of the policy) 200,000 Inheritance received upon death of aunt 100,000 Jackson (a cousin) repaid a loan Aiden made to him in 2015 (no interest was provided for) 5,000 Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and 9,700 charitable contributions) Number of dependents (children, ages 17 and 18, and mother-in-law, age 70) Age 43 Click here to access the standard deduction table to use, if required. a. Indicate whether the items are taxable or not taxable to Aiden. Cash dividend received on Chevron common stock Salary Тахаble Interest on bonds issued by City of Boston Life insurance proceeds Interest on a CD issued by Wells Fargo Bank Inheritance received upon the death of his aunt Proceeds from repayment of a loan b. What is Aiden's filing status? c. Should Aiden itemize his deductions or take the standard deduction? d. Aiden's taxable income in 2021 is $
Compute the taxable income for 2021 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2019. Salary $80,000 Interest on bonds issued by City of Boston 3,000 Interest on CD issued by Wells Fargo Bank 2,000 Cash dividend received on Chevron common stock 2,200 Life insurance proceeds paid upon death of aunt (Aiden was the designated beneficiary of the policy) 200,000 Inheritance received upon death of aunt 100,000 Jackson (a cousin) repaid a loan Aiden made to him in 2015 (no interest was provided for) 5,000 Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and 9,700 charitable contributions) Number of dependents (children, ages 17 and 18, and mother-in-law, age 70) Age 43 Click here to access the standard deduction table to use, if required. a. Indicate whether the items are taxable or not taxable to Aiden. Cash dividend received on Chevron common stock Salary Тахаble Interest on bonds issued by City of Boston Life insurance proceeds Interest on a CD issued by Wells Fargo Bank Inheritance received upon the death of his aunt Proceeds from repayment of a loan b. What is Aiden's filing status? c. Should Aiden itemize his deductions or take the standard deduction? d. Aiden's taxable income in 2021 is $
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
Problem 29P
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Transcribed Image Text:Compute the taxable income for 2021 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from
his wife since 2019.
Salary
$80,000
Interest on bonds issued by City of Boston
3,000
Interest on CD issued by Wells Fargo Bank
2,000
Cash dividend received on Chevron common stock
2,200
Life insurance proceeds paid upon death of aunt (Aiden was the designated beneficiary of the policy)
200,000
Inheritance received upon death of aunt
100,000
Jackson (a cousin) repaid a loan Aiden made to him in 2015 (no interest was provided for)
5,000
Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and
9,700
charitable contributions)
Number of dependents (children, ages 17 and 18, and mother-in-law, age 70)
Age
43
Click here to access the standard deduction table to use, if required.
a. Indicate whether the items are taxable or not taxable to Aiden.
Cash dividend received on Chevron common stock
Salary
Taxable
Interest on bonds issued by City of Boston
Life insurance proceeds
Interest on a CD issued by Wells Fargo Bank
Inheritance received upon the death of his aunt
Proceeds from repayment of a loan
b. What is Aiden's filing status?
c.
Should Aiden itemize his deductions or take the standard deduction?
d.
Aiden's taxable income in 2021 is $
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