Sandy and Denny are married with three dependent children ages 18, 19, and 20, and own and operate a store, selling masonry materials, although Denny also works part time as an employee at another store selling lumber. The records for the masonry store’s current year 2019, revealed the following:

Gross income from sales for the store ...........................$ 276,600

Long-term capital gains

(from the sale of land)..............................................................7,900

Store operating expenses        

Insurance    (not health).........................................................39,290

Rent..........................................................................................89,300

Supplies         (nonmanufacturing)...................................... 35,500

Depreciation     (ditto)..............................................................48,200

Wages and Payroll taxes..........................................................119,200

Also loss from theft of a business car (only business use) purchased originally for $ 40,200, depreciation of $ 12,500 taken so far, but which is now worth $ 34,800, Insurance proceeds from the theft were only $ 11,200.

Other items not related to the masonry business include

Dividend income from Apple Inc., stock..............................................................9,500

Interest expense on home mortgage..................................................................9,800

Property taxes on home.......................................................................................15,300

Long-term capital gain...........................................................................................7,950

Long-term capital loss .............................................................. ...........................5,600                                     

Denny’s Salary    (from the other job) .................................................................49,100

Calculate Sandy and Denny’s AGI, taxable income or loss, and net operating loss for the year 2019 are?

Answer rating: 100% (QA)

Sandy Dennys AGI Taxable IncomeLoss for the year 2019 Particulars Amount Remarks Salary Income 49100 ... View the full answer