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For tax year 2020, a taxpayer has the following income items: • $200,000 Wages (with no employer-sponsored pension) • Sale of primary residence for $250,000 (where the taxpayer lived for the past 3 years) • $40,000 alimony paid, which was ordered from a 2019 divorce decree • $25,000 Life Insurance proceeds • $4,500 Traditional IRA contribution Is this the adjusted gross income for the taxpayer?

For tax year 2020, a taxpayer has the following income items: • $200,000 Wages (with no employer-sponsored pension) • Sale of primary residence for $250,000 (where the taxpayer lived for the past 3 years) • $40,000 alimony paid, which was ordered from a 2019 divorce decree • $25,000 Life Insurance proceeds • $4,500 Traditional IRA contribution Is this the adjusted gross income for the taxpayer?

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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7. For tax year 2020, a taxpayer has the following income items: • $200,000 Wages (with no employer-sponsored pension) • Sale of primary residence for $250,000 (where the taxpayer lived for the past 3 years) $40,000 alimony paid, which was ordered from a 2019 divorce decree $25,000 Life Insurance proceeds $4,500 Traditional IRA contribution Is this the adjusted gross income for the taxpayer? $185,000 Yes No Click 'Yes' or 'No' for each option until complete.
Transcribed Image Text:7. For tax year 2020, a taxpayer has the following income items: • $200,000 Wages (with no employer-sponsored pension) • Sale of primary residence for $250,000 (where the taxpayer lived for the past 3 years) $40,000 alimony paid, which was ordered from a 2019 divorce decree $25,000 Life Insurance proceeds $4,500 Traditional IRA contribution Is this the adjusted gross income for the taxpayer? $185,000 Yes No Click 'Yes' or 'No' for each option until complete.
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