Week 1

P 3-31. Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $11,950 and forur exemptions. Assuming an familiarised unrefined income of $40,000, what is their taxable income for 2011?

$40,000 AGI
-11,950 Itemized Deduction
28,050
-14,800 Personal Exemption (3700 x 4)
$13,250 Taxable Income

P3-32. calculate Maries taxable income for 2011, assuming she is single and claims two capable children. Her adjusted gross income is $70,000, and she has itemized deductions of $9,000.
$70,000 AGI
-9,000 Itemized Deduction
61,000
-11,100 Personal Exemption (3700 x 3)
$49,900 Taxable Income

P3-36. Compute Stanleys taxable income for 2011, assuming he has $1,000 in wages from operative in a grocery store and $2,000 in matter to income from some bonds he owns. Stanley, age 16, is claimed as a dependent on his parents return.

$3,000 Total Gross Income
$1,ccc Standard Decuction ($1,000 earned + $300 Standard Deduction)
$1,700 Taxable Income

P13-55. Mr. Z, a non-dealer, sold assets on an installation plan. Determine Mr. Zs gross income for 2011. Relevant selective information include:
GrossInstallmentGross 2011Gross
Year lettuceSalesProfit % Collections Income
2009$50,000 /$200,000 =.



25 x $25,000 =$ 6,250
2010 81,000 / 300,000 =.27 x 80,000 =$21,600
201196,000 / 400,000 =.24 x 125,000 =$30,000
$57,850 (GI for 2011)

P13-69. schnozzle is a cash-basis, calendar-year taxpayer. Which of the following declination items result in gross income or deductions for the current year?
a.Check veritable for celestial latitude rent, $700, not deposited until January 4.
Answer: Current year income because the check was received in December

b.Check for $1,100 to pay Bills state income taxes mailed December 28, cashed January 7.
Answer: Deductions for current year because was written in December

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