Homework Problem I Dwayne Johnson is single and living alone. He had income and expenditures for the year as follows. $65, 000 Salary income (from W-2) Interest income from: 1,200 3,000 20,000 5,000 1,500 Bank account Maricopa County bonds Inheritance from grandparent Contribution to Roth I.R.A. Interest expense on student loan Potential Itemized Deductions Interest expense on home mortgage Interest expense on car loan Interest expense on credit cards Property taxes paid (car and home) Charitable contributions Federal income tax withheld State income tax withheld 6,000 1,100 300 2,700 3,000 10,000 2,000 Compute the amount of: a) taxable income, b) income taxes, and c) amount of tax to be paid (refunded) IRS ACC 212 / 240 Income Taxes-Page 16