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    Income Tax and AGI Questions

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    This formatted MS Excel file contains tax accounting samples on income tax liabilities, adjustments to and for AGI, and determination of taxable income.

    © BrainMass Inc. brainmass.com April 3, 2020, 5:17 pm ad1c9bdddf
    https://brainmass.com/business/accounting/income-tax-agi-questions-153871

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    1. Ashley earns a salary of $35,000, has capital gains of $4,000, and interest income of $3,000 in 2007. Her husband died in 2006. Ashley has a dependent son, Tyrone, who is age 8. Her itemized deductions are $8,000.

    a.Calculate Ashley's taxable income for 2007.
    Salary $35,000
    Capital Gains 4,000
    Interest Income 3,000
    Personal Exemption (6,800) - Equals $3,400 per individual x 2.
    Itemized Deduction (8,000)
    2007 Taxable Income $27,200

    b.What is her filing status?
    Being a surviving widow, with a dependent child, Ashley's 2007 filing status is Head of Household.

    2.Homer (age 68) and his wife Jean (age 70) file a ...

    Solution Summary

    This formatted MS Excel file contains tax accounting samples on income tax liabilities, adjustments to and for AGI, and determination of taxable income.

    $2.19

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