Answer all questions and problems appearing on this examination under rules governing federal income taxation. Unless instructed otherwise, assume the relevant year to be2023.

Allfinal answershavebeen rounded to the nearest$10.

Betty's mother, Bertha, also lives. Bertha is age 92 and blind with zero gross income. Bill and Betty provide 100% of Bertha's support. What standard deduction will Bill and Betty claim on their joint federal income tax return for the year? A $30,700 B 27,700 C 28,700 D 29,200 E None of the above Thomas Taylor, who was injured in an automobile accident caused by another driver, Flash Fisher, received $20,000 from Flash's insurance company to cover medical bills related to Thomas' injuries, $4,000 in damages because ofthe injury, and $15,000 in in punitive damages, all during 20xI. Thomas also earned $10,000 from a part-time job priorto the accident, received $900 of United States series EE savings bond interest, and collected $2,000 in unemployment benefits while out of work during the year. What is Thomas' adjusted gross for theyear? income for the year? A $ 27,000 B 25,900 C 25,000 D 10,900 E None of the above Ben Baker purchased Ajax Company stock five years ago for $9,000, which he gifted to Anne Able at a time when the stock's market value was $12,000. Subsequently, Anne sold the stock for $13,000. What will be the amount of Anne's gain or loss on the sale? A $3,000 gain B 1,000 gains C 4,000 gains D O gain orloss E None of the above adjusted gross income of $270,000. What is the amount of Russell's netinvestment income tax for the year? A $2,660 B 0 C 680 D 760 E None of the above