The information that follows applies to the current year for Aaron and Janelle, a married couple. • Aaron is employed as a shoe salesman; his compensation is $75,000.
• Janelle is employed by the state of Indiana; her compensation is $35,000.
• Aaron and Janelle have total allowable itemized deductions of $12,000.
• Aaron and Janelle have two dependent children.
• Aaron and Janelle have other economic income as follows: - Interest on U.S. Treasury notes $1,000. - Interest on Compost Computer bonds $1,500. - Interest on German government bonds $750. - Interest on City of Nashville. bonds $1,200. - Aaron's wealthy uncle gives him $1,000. - Janelle sold Aaron's football card collection for $3,000. It cost $800. - Janelle sells Aaron's fishing boat for $2,000. Aaron had purchased the boat 3 years ago for $2,800. Based on the above information, what is Aaron and Janelle 's adjusted gross income?

Question

Quizplus · Accepted Answer

Aaron and Janelle's adjusted gross income is calculated by summing their salaries, taxable interest, and capital gains, then subtracting any capital losses. The calculation is: $75,000 (Aaron's salary) + $35,000 (Janelle's salary) + $1,000 (U.S. Treasury interest) + $1,500 (Compost Computer bonds interest) + $750 (German bonds interest) + $1,200 (City of Nashville bonds interest) + $2,200 (gain from football card collection sale) - $800 (loss from fishing boat sale) = $115,450.

The Information That Follows Applies to the Current Year for Aaron