Compute Aiden’s 2017 taxable income on the basis of the following information. Aiden is married but has not seen or heard from his wife for over three years.
Salary ............................................................................................................................... $ 80,000
Interest on bonds issued by City of Boston ................................................................................. 3,000
Interest on CD issued by Wells Fargo Bank ................................................................................. 2,000
Cash dividend received on Chevron common stock ................................................................ 2,200
Life insurance proceeds paid due to the death of Aunt Margie
(Aiden was the designated beneficiary of the policy) .......................................................... 200,000
Inheritance received on death of Aunt Margie ....................................................................... 100,000
Jackson (a cousin) repaid a loan Aiden made to him in 2010
(no interest was provided for) ............................................................................................................ 5,000
Itemized deductions (state income tax, property taxes on residence, interest on
home mortgage, charitable contributions) ................................................................................... 9,700
Number of dependents (children, ages 17 and 18; mother-in-law, age 60) ........................... 3
Age ...................................................................................................................................................................... 43