Paul and Paula (married filing jointly) engaged in the following transactions during 2021. Determine their total AGI.
Question:
Paul and Paula (married filing jointly) engaged in the following transactions during 2021. Determine their total AGI. LABEL EACH ITEM. 1. Paul works at ABC, Co. where he earned a salary of $95,000. ABC, Co. also paid $10,000 in educational expenses for Paul to pursue a graduate degree under an employee educational assistance program. 2. Paula works at XYZ, Co. where she earned a salary of $75,000. Paul and Paula participate in a healthcare plan through XYZ, Co., where the company covers all insurance premiums ($7,000). XYZ, Co. also offers employees discounted on-sight childcare. The couple's two children (ages 3 and 5) both go to childcare at XYZ, Co (the total cost of $18,000 is paid half by XYZ and half by Paula). 3. On July 1 of the current year the couple loaned Paula's sister $50,000 at a zero percent interest rate. The applicable federal interest rate is 2 percent. 4. Paul enjoys online sports betting. During the year he had $4,000 in gambling losses and $5,000 in gambling winnings ($1,000 of net winnings). Paul donated his $1,000 of net winnings to a qualified charitable organization.
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward