Please answer and SHOW ALL WORK. Erimma is single with no dependents and had the
ID: 2519763 • Letter: P
Question
Please answer and SHOW ALL WORK.
Erimma is single with no dependents and had the following for 2014:
Wages from union job: $75,000
Loss from sale of stock held 4 years: $-2,000
Qualifying dividends $3,000
Exemption deduction $3,950
Itemized deductions $14,900
How much is Erimma's taxable income?
a) $57,150
b) $60,150
c) $58,150
d) $76,000
How much is Erimma's ordinary income for calculating her capital gains tax for 2014?
a) $56,150
b) $76,000
c) $54,150
d) $57,150
Assuming Erimma's ordinary income is $36,900 and her taxable income is $56,900, how much is her federal income?
a) $8,535
b) $10,154
c) $5,154
d) $8,154
Explanation / Answer
1.
Wages - 75000
Loss from srock = -2000
Qualifying dividends= 3000
Total Income = 76000
less Exemptions deductions = 3950
less itemized deductions =14900
Taxable income = 76000-3950-14900 = 57150
3.
2. 75000-2000+3000 = 76000
3.