John, age 40, is single and has the following income and expenses for 2020:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
  1. John, age 40, is single and has the following income and expenses for 2020:

Salary   $170,000

Net rental income $7,200

Dividend income (qualified) $4,000

Interest from TD bank $65

Interest from City of Phila bonds $1,200

Loss on sale of section 1244 stock purchased directly from the Corporation $40,000.

Alimony payment (divorce finalized December 30, 2018) $12,000.

Loss on personal auto as a result of an auto accident $2,500

Contribution to traditional IRA $5,000

Charitable contributions $750

Mortgage interest on personal residence $12,000

Real estate taxes $4,500

State income taxes $5,219

Parking ticket (occurred during work related meeting) $100.

Medical expenses (not reimbursed) $4.980.

 

Calculate John’s AGI, taxable income and tax liability for 2020.

Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Income Tax Fundamentals
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education