Use the provided Excel spreadsheet for the Critical Thinking Assignment for this week. In column A, you will find a list of transactions that may or may not be deductible. Columns B through H have options from which you are to select the appropriate tax treatment of the transaction. Once you have made all of your selections, upload the completed spreadsheet for grading.

In each independent item below, assume that a single taxpayer earned $30,000 in W-2 income. Show the appropriate amount that should appear under each heading. More than one option may be selected

Item Amount Include in Gross Income Exclude form Gross Income Deduction for AGI Deduction from AGI Appears on Schedule A Appears on Schedule B Appears on Schedule D

Interest from Savings Account $60

Dividends from stock investment $500

Bad Debt from an Unpaid Loan $6,000

Donation of automobile to charity $600

Cash donation to church $500

Cash donation to charity $3,000

Student loan interest $1,200

Alimony $12,000

Loss on the sale of stock purchased 5 years ago $900

Gain of the sale of stock purchased 6 years ago $1,200

Traditional IRA contributions $4,500

Net loss on real estate rental properties $6,000

Home business (sole proprietorship) profit $12,000

Moving expenses $2,500