Question: Jim age 50 and Martha age 49 are married with

Jim (age 50) and Martha (age 49) are married with three dependent children. They file a joint return for 2014. Their income from salaries totals $50,000, and they received $10,000 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income. Jim and Martha’s deductions for adjusted gross income amount to $3,200, and they have itemized deductions totalling $13,000. Calculate the following amounts:
a. Gross income $_______________
b. Adjusted gross income $_______________
c. Itemized deduction or standard deduction amount $_______________
d. Number of exemptions $_______________
e. Taxable income $_______________
f. Income tax liability (Do not consider the alternative minimum tax covered in Chapter 6 or any credits.) $_______________

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  • CreatedJuly 16, 2015
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