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elp with the following two questions 1) What is Ian and Isabella’s (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible. 2) What is Ian and Isabella's adjust

elp with the following two questions 1) What is Ian and Isabella’s (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible. 2) What is Ian and Isabella's adjust

FINANCIAL ACCOUNTING
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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Please help with the following two questions

1) What is Ian and Isabella’s (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible.

2) What is Ian and Isabella's adjusted gross income (AGI)? 

 

 

lan, 37, and Isabella, 36, are married and file a joint tax return. They have one child, Ingrid (Isabella's daughter from a prior marriage and is claimed as a dependent (QC) on lan & Isabella's joint return). In 2020, Isabella and lan had the following items: Salary (Isabella): $83,000 Salary (lan): $13,000 Scholarship: $6,500 ($2,500 used to pay lan's tuition at an eligible educational institution, $1,000 used to buy required textbooks, and $3,000 used to pay room and board) California Paid Family Leave (PFL): $2,000 Inheritance from Isabella's father: $100,000 Child support payments received from Isabella's ex-husband: $6,000 What is lan and Isabella's (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible.
Transcribed Image Text:lan, 37, and Isabella, 36, are married and file a joint tax return. They have one child, Ingrid (Isabella's daughter from a prior marriage and is claimed as a dependent (QC) on lan & Isabella's joint return). In 2020, Isabella and lan had the following items: Salary (Isabella): $83,000 Salary (lan): $13,000 Scholarship: $6,500 ($2,500 used to pay lan's tuition at an eligible educational institution, $1,000 used to buy required textbooks, and $3,000 used to pay room and board) California Paid Family Leave (PFL): $2,000 Inheritance from Isabella's father: $100,000 Child support payments received from Isabella's ex-husband: $6,000 What is lan and Isabella's (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible.
Same facts as previous question. lan and Isabella paid the following expenses in 2020: Federal income taxes withheld on wages: $9,000 State & local income taxes: $8,000 Property taxes on principal residence: $5,000 Sales tax: $1,000 Interest on credit card used for personal travel: $4,500 Interest on $350,000 mortgage used to purchase principal residence: $2,000 Interest on $20,000 home-equity loan used to improve their principal residence: $1,000 Deductible student loan interest: $2,000 Deductible medical expenses (this is the amount after the % of AGI floor has been applied): $1,000 Unreimbursed employee business expenses (job supplies): $750 lan and Isabella's home is worth $550,000. They have proper records to substantiate all expenses. What is lan and Isabella's adjusted gross income (AGI)?
Transcribed Image Text:Same facts as previous question. lan and Isabella paid the following expenses in 2020: Federal income taxes withheld on wages: $9,000 State & local income taxes: $8,000 Property taxes on principal residence: $5,000 Sales tax: $1,000 Interest on credit card used for personal travel: $4,500 Interest on $350,000 mortgage used to purchase principal residence: $2,000 Interest on $20,000 home-equity loan used to improve their principal residence: $1,000 Deductible student loan interest: $2,000 Deductible medical expenses (this is the amount after the % of AGI floor has been applied): $1,000 Unreimbursed employee business expenses (job supplies): $750 lan and Isabella's home is worth $550,000. They have proper records to substantiate all expenses. What is lan and Isabella's adjusted gross income (AGI)?
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