Consider the following 2020 information for Bella and Bill, who file married filing jointly: Scenario I Scenario II Combined salaries of both spouses 164,000 432,100 Purchased stock 5 years ago for 40,000; sold it in 2020 for: Received an inheritance from an aunt who passed away during 2020 Medical expenses paid Mortgage interest paid Charitable contributions paid in cash State taxes withheld Local property taxes paid 31,800 did not sell 99,000 99,000 14,100 14,100 8,800 12,100 770 6,000 5,000 34,568 4,100 14,000 89,000 Federal taxes withheld 17,000 Minor dependent children Two Two a. What is AGI, taxable income and the tax owed? b. What would the tax owed be if the Affordable Care Act (Obamacare) was not in effect?

Consider the following 2020 information for Bella and Bill, who file married filing jointly: Scenario I Scenario II Combined salaries of both spouses 164,000 432,100 Purchased stock 5 years ago for 40,000; sold it in 2020 for: Received an inheritance from an aunt who passed away during 2020 Medical expenses paid Mortgage interest paid Charitable contributions paid in cash State taxes withheld Local property taxes paid 31,800 did not sell 99,000 99,000 14,100 14,100 8,800 12,100 770 6,000 5,000 34,568 4,100 14,000 89,000 Federal taxes withheld 17,000 Minor dependent children Two Two a. What is AGI, taxable income and the tax owed? b. What would the tax owed be if the Affordable Care Act (Obamacare) was not in effect?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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