Summary Problem: Tommy, a Single Taxpayer with No Dependents, Has

Summary Problem: Tommy, a single taxpayer with no dependents, has the following items that may affect his taxable income. What is his adjusted gross income?
$\begin{array}{lr}\text { Employee salary received } & \$ 70,000 \\\text { Child support paid to ex-wife } & 12,000 \\\text { Total allowable itemized deductions } & 3,000 \\\text { Cash gift received from parents } & 7,000 \\\text { Gain on the sale of stock } & 5,000 \\\text { Loss on the sale of personal residence } & (10,000) \\\text { Loss on the sale of stock } & (6,000) \\\text { Amount collected from a life insurance policy } & 40,000 \\\text { Health insurance premiums paid by his employer } & 3,000 \\\text { Winnings from gambling trip to Las Vegas } & 800 \\\text { Cost of employer paid parking space } & 1,200 \\\text { Government pension benefits received } & 15,000 \\\text { Amount his dog earned from being in a television commercial } & 2,000\end{array}$

Correct Answer:

Verified

Show Answer