Martha, 60, and Mike, 68, are your clients. They file a married filing joint tax return....

 

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Martha, 60, and Mike, 68, are your clients. They file a married filing joint tax return. Mike retired March 1, 2022 from his medical practice. He purchased an annuity January 1, 2022 to replace his salary. He paid $1,000,000 for the annuity, which will pay him a monthly amount of $12,500 for life. Martha is an attorney. Their financial information for the current year is presented as follows: Financial Information: Salary - Mike Salary-Martha. Gambling winnings Qualified dividends Non-qualified dividends Share of partnership income Annuity Savings account interest City of Omaha bond interest Life insurance proceeds (face value) received on the death of Mike's brother Deductions "For" Adjusted Gross Income $ 30,000 200,000 1,000 6,500 1,800 58,000 150,000 500 350 500,000 Life insurance proceeds (face value) received on the death of Mike's brother Deductions "For" Adjusted Gross Income Employee Benefits: Martha received the following employee benefits during the year: Benefit Received: Company car Group-term life insurance of $200,000 face value Health insurance premiums Dental & Vision insurance premiums Meals while entertaining clients Continuing professional education Dues to various professional organizations What is their adjusted gross income (AGI)? Cost to Company: $ 12,000 1,700 15,500 2,000 2,200 3,000 2,800 500,000 Martha, 60, and Mike, 68, are your clients. They file a married filing joint tax return. Mike retired March 1, 2022 from his medical practice. He purchased an annuity January 1, 2022 to replace his salary. He paid $1,000,000 for the annuity, which will pay him a monthly amount of $12,500 for life. Martha is an attorney. Their financial information for the current year is presented as follows: Financial Information: Salary - Mike Salary-Martha. Gambling winnings Qualified dividends Non-qualified dividends Share of partnership income Annuity Savings account interest City of Omaha bond interest Life insurance proceeds (face value) received on the death of Mike's brother Deductions "For" Adjusted Gross Income $ 30,000 200,000 1,000 6,500 1,800 58,000 150,000 500 350 500,000 Life insurance proceeds (face value) received on the death of Mike's brother Deductions "For" Adjusted Gross Income Employee Benefits: Martha received the following employee benefits during the year: Benefit Received: Company car Group-term life insurance of $200,000 face value Health insurance premiums Dental & Vision insurance premiums Meals while entertaining clients Continuing professional education Dues to various professional organizations What is their adjusted gross income (AGI)? Cost to Company: $ 12,000 1,700 15,500 2,000 2,200 3,000 2,800 500,000

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To calculate Martha and Mikes adjusted gross income AGI we need to add up their total income and the... View the full answer