
Julie, an unmarried individual, lives in a home with her 13-year-old dependent son, Oscar. This year, Julie had the following tax information. Standard Deduction Table.
Salary $ 95,000
Interest and dividend income 12,800
Capital gain from sale of investments 11,000
Above-the-line deductions 800
Itemized deductions 6,900
Compute Julie's adjusted gross income (AGI) and taxable income.
A) AGI $118,000; taxable income $97,800
B) AGI $118,000; taxable income $90,900
C) AGI $118,000; taxable income $100,000
D) AGI $107,000; taxable income $88,700
Correct Answer:
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