Hope Is a Marketing Manager at a Local Company Compute Hope's Taxable Income for the Year in Good Form
Question 107
Question 107
Essay
Hope is a marketing manager at a local company.Information about her 2019 income and expenses is as follows: Income received Salary Taxes withheld from salary: Federal income tax State income tax Social Security tax Medicare tax $30,0009,0008,2092,175 Interest income from bank Dividend income from U.S. stocks Short-term capital gain Long-term capital gain State income tax refund from lastyear Expenses paid: Unreimbursed dental and eyecare costs Property taxes on her home Fees paid to town for garbage pick-up Stock donated to American Red Cross; FMV $5,000; purchased three years ago for $3,100 Home mortgage interest Investment interest expense Interest on car loan $150,0006,0004,0002,0003,000500$1,8003,90040010,00011,000300 Compute Hope's taxable income for the year in good form.Show all supporting computations.Hope is single,and she elects to itemize her deductions each year.Assume she does not make any elections regarding the investment interest expense.Also assume that her tax profile was similar in the preceding year.
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