You are getting ready to prepare a 2022 tax return for your clients Moose and Suzie Okie and are doing some initial calculations.    Moose and Suzie have two children, Arva (age 12) and Ralph (age 9).    They have provided you with the following information regarding 2022 relevant activities:  Moose received a Form W-2 for $60,000 which showed his federal income tax withheld amount was $7,000. Suzie has a residential rental property (cost basis $270,000) which was rented for the whole year for $2,000 per month. Property taxes on the residential rental property: $3,700 and property insurance: $1,785. Suzie spent $500 fixing the sprinklings system and $5,000 for a new roof after a hailstorm. Moose got lucky and won $4,000 gambling on a trip to Las Vegas. Suzie sold her old car for $4,000. She had originally paid $8,000 for it. She also sold a parcel of land for $7,500 on March 7, 2022. She purchased it on January 5th of 2000 for $5,000.       What is the total reportable income?

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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You are getting ready to prepare a 2022 tax return for your clients Moose and Suzie Okie and are doing some initial calculations. 

 

Moose and Suzie have two children, Arva (age 12) and Ralph (age 9). 

 

They have provided you with the following information regarding 2022 relevant activities: 

  • Moose received a Form W-2 for $60,000 which showed his federal income tax withheld amount was $7,000.
  • Suzie has a residential rental property (cost basis $270,000) which was rented for the whole year for $2,000 per month.
  • Property taxes on the residential rental property: $3,700 and property insurance: $1,785.
  • Suzie spent $500 fixing the sprinklings system and $5,000 for a new roof after a hailstorm.
  • Moose got lucky and won $4,000 gambling on a trip to Las Vegas.
  • Suzie sold her old car for $4,000. She had originally paid $8,000 for it.
  • She also sold a parcel of land for $7,500 on March 7, 2022. She purchased it on January 5th of 2000 for $5,000.  

 

 

What is the total reportable income?

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