Question: This year Diane intends to file a married-joint return. Diane received $181,100 of salary and paid $6,550 of interest on loans used to pay qualified

This year Diane intends to file a married-joint return. Diane received $181,100 of salary and paid $6,550 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $8,950 and $30,100 of alimony to her ex-spouse, Jack, who she divorced in 2012.

Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.

a. What is Diane's adjusted gross income?

b. Suppose that Diane also reported income of $10,500 from a half share of profits from a partnership. Disregard any potential self-employment taxes on this income. What AGI would Diane report under these circumstances?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!