Compute the taxable income for 2016 for Aiden on the basis of the following information. Aiden is

Question:

Compute the taxable income for 2016 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2014.

Salary ........................................................................................$ 80,000

Interest on bonds issued by the 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 on death of aunt (Aiden was the designated

beneficiary of the policy) .................................................................. 200,000

Inheritance received upon death of aunt ................................................ 100,000

Jackson (a cousin) repaid a loan Aiden made to him in 2009 (no interest was

provided for) ................................................................................. 5,000

Itemized deductions (state income tax, property taxes on residence, interest on

home mortgage, and charitable contributions) ........................................... 9,700

Number of dependents (children, ages 17 and 18, and mother-in-law, age 70) ......3

Age ............................................................................................. 43

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...