Tom and Mary are married and file jointly. In 2016, Tom earned a salary of $52,000. Mary is self employed. Her gross income was $55,000 and her business expenses totaled $28,000. Each contributed $4,500 to a deductible IRA. Their itemized deductions total $15,000. Compute the gross income, adjusted gross income, and their taxable income assuming they have two dependent children. Compute without regards to self-employment tax.
Tom and Mary are married and file jointly. In 2016, Tom earned a salary of $52,000. Mary is self employed. Her gross income was $55,000 and her business expenses totaled $28,000. Each contributed $4,500 to a deductible IRA. Their itemized deductions total $15,000. Compute the gross income, adjusted gross income, and their taxable income assuming they have two dependent children. Compute without regards to self-employment tax.
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 29P: Arthur and Cora are married and have 2 dependent children. They have a gross income of 95,000. Their...
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Transcribed Image Text:Tom and Mary are married and file jointly. In 2016, Tom earned a salary of
$52,000. Mary is self employed. Her gross income was $55,000 and her
business expenses totaled $28,000. Each contributed $4,500 to a deductible
IRA. Their itemized deductions total $15,000. Compute the gross income,
adjusted gross income, and their taxable income assuming they have two
dependent children. Compute without regards to self-employment tax.
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ISBN:
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Author:
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Publisher:
CENGAGE LEARNING - CONSIGNMENT