The following information pertains to Rich and Shelly Beach, a married couple filing a joint federal income tax return for the calendar year 2017:

Put the amount the Beaches should report on their joint 2017 federal income tax return for each item below. Assume adjusted gross income is $54,322. Any possible alternative treatment should be resolved in a manner that will minimize 2017 taxable income.

Answer Choice: 0 / 240 / 650 / 700 / 800 / 928 / 1020 / 1380 / 1800 / 2400 / 2500 / 2642 / 3550 / 4314 / 5400 / 7000 / 8856 / 57000 / 58072

Tax Item	Answer
1. Gross income from dividends
2. Gross income other than dividends
3. Deduction for bad debts
4. Deduction for business use of home
5. Deduction for real property taxes
6. Itemized deduction for taxes other than real property taxes
7. Adjustment to gross income for self-employment tax
8. Deduction for charitable contributions
9. Deduction for interest
10. Deduction for employee business expense
11. Deduction for insurance expense

Transcribed Image Text:

Rich, age 39 -- received in 2017 Cash paid in 2017 Bookkeeping services rendered Rich and Shelly's home A/R at end of 2016 $ 7,000 $3,410 Acquisition mortgage principal Interest on the mortgage A/R accrued during 2017 10,000 $17,000 5,400 A/R written off as wholly Real property taxes Sidewalk assessment (total) 1,800 worthless in 2017 2,000 1,750 A/R at beginning of 2018 3,000 Fire insurance premiums 240 Payments received on A/R during 2017 Utilities 2,400 $15,000 $12,000 Mail order resale business Mail order resale business Cost of goods sold $10,200 Gross receipts 22,200 Advertising expense 2,900 Capital gain from sale of Office supplies 370 vacant land 1,072 Post office box rental 130 Dividends Other direct costs, e.g., bank fees 600 14,200 From taxable domestic Continuing professional education corporations 700 courses required to maintain teaching On life insurance policy certification 200 (accumulated net premiums Teachers union dues 600 not exceeded) 228 Medical and dental expenses Doctors $1,475 Shelly, age 33 -- received in 2017 Dentists 775 Salary -- employed as teacher Travel to doctors 150 2,400 Gross amount $33,000 Contribution to a national political party 200 Rich, age 39 -- received in 2017 Cash paid in 2017 Bookkeeping services rendered Rich and Shelly's home A/R at end of 2016 $ 7,000 $3,410 Acquisition mortgage principal Interest on the mortgage A/R accrued during 2017 10,000 $17,000 5,400 A/R written off as wholly Real property taxes Sidewalk assessment (total) 1,800 worthless in 2017 2,000 1,750 A/R at beginning of 2018 3,000 Fire insurance premiums 240 Payments received on A/R during 2017 Utilities 2,400 $15,000 $12,000 Mail order resale business Mail order resale business Cost of goods sold $10,200 Gross receipts 22,200 Advertising expense 2,900 Capital gain from sale of Office supplies 370 vacant land 1,072 Post office box rental 130 Dividends Other direct costs, e.g., bank fees 600 14,200 From taxable domestic Continuing professional education corporations 700 courses required to maintain teaching On life insurance policy certification 200 (accumulated net premiums Teachers union dues 600 not exceeded) 228 Medical and dental expenses Doctors $1,475 Shelly, age 33 -- received in 2017 Dentists 775 Salary -- employed as teacher Travel to doctors 150 2,400 Gross amount $33,000 Contribution to a national political party 200

Answer rating: 100% (QA)

Tax Item Answer 1 Gross income from dividends 58072 2 Gross income other than dividends 3550 3 Ded... View the full answer