Calculate Adjusted gross income for Sarah Smith based on the following information:

salary $200,000

child support received $20,000

capital loss $5,000

Interest on State of California bonds $20,000

Interest on Federal treasury bonds $10,000

Sole proprietorship net income $40,000

Partnership loss $2,000

Unemployment compensation $20,000

Sarah received a gift of $10,000 from her father.

Contribution to Individual Retirement Account $1,000

Sarah's brother Samuel paid back a $10,000 loan from 2015

Contribution to health savings account $1,000

Penalty for early withdrawal from a timed savings account $1,000.

Rental income $20,000

Sarah found a ring with a fair market value of $2,000 on the bus.

Sarah won $1,000 in scratch of lotto

Sarah won $500 in a baking contest.

Sarah had qualified student loan interest of $1,000

Sarah received alimony of $40,000 divorce decree signed in 2012

Sarah received a legal settlement of $20,000 in payment for a broken ankle she incurred during a ferris wheel accident.

Sarah received life insurance payment of $100,000 due to the death of her great grandmother.

Sarah inherited $50,000 from her great aunt.

Answer rating: 100% (QA)

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