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Determine Velma's AGI for 2004

Velma, a married taxpayer filing a joint return, had the following items for 2004:

· Salary of $75,000.

· Loss of $25,000 on the sale of stock acquired two years ago from Mac, an investor.

· Gain of $20,000 on the sale of §1244 stock acquired three years ago.

· Stock acquired on January 15, 2004, for $5,000 became worthless on July 1, 2004.

Determine Velma's AGI for 2004.

a. $75,000.
b. $72,000.
c. $70,000.
d. $65,000.
e. None of the above

Solution Preview

Velma, a married taxpayer filing a joint return, had the following items for 2004:

? Salary of $75,000.

? Loss of $25,000 on the sale of stock ...

Solution Summary

This solution is comprised of a detailed explanation to answer the request of the assignment in text file.

$2.19