4 question 3 40 pts jennifer is single and has the

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Income Tax Fundamentals 2019
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Chapter 2 / Exercise 24
Income Tax Fundamentals 2019
Whittenburg/Gill
Expert Verified
4 Question 3. 40 pts. Jennifer is single and has the following income and expenses: Salary $76,000 Interest income 5,000 Dividend income 9,000 Long-term capital gain 10,000 Short-term capital loss 14,000 Deductions for AGI 3,000 Deductions from AGI 9,000 Calculate Jennifer's taxable income and income tax liability.
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Income Tax Fundamentals 2019
The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise 24
Income Tax Fundamentals 2019
Whittenburg/Gill
Expert Verified
5 Multiple Choice 4 pts each1. During the current year, Trane invests $35,000 in each of two separate corporations. Each investment gives him a 20% ownership interest. Brazil Corporation is a regular corporation that has taxable income of $200,000 and pays dividends totaling $50,000. China Corporation is an S corporation that has taxable income of $100,000 and pays $50,000 of dividends. As a result of these two investments, Trane I. Has $40,000 of taxable income from Brazil Corporation. II. Has $20,000 of taxable income from China Corporation.
2. Roberta invests $16,000 for a 10% interest in Bowie Partnership. In the first year of operations, Bowie reports net income from operations of $80,000 and distributes $6,000 cash to Roberta. How much gross income must Roberta recognize from her investment in Bowie?
3. Nora receives a salary of $55,000 during the current year. She sells some land that she held as an investment at a loss of $15,000 and some stock at a gain of $10,000. Nora's adjusted gross income is:
4. Boris, a single individual, has two sales of stock during the current year. The first sale produces a short-term loss of $27,000 and the second sale results in a long-term gain of $57,000. Boris's taxable income without considering the gain is $125,000. Boris's stock transactions will increase his taxable income by: a. $ -0- b. $30,000 c. $34,000 d. $54,000 ANS: B
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