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Business, 29.07.2020 21:01 madisonenglishp2qkow

Kelly Martin divorced in 2017; her 6-year-old child, Barbara, lives with her and is her dependent. Kelly has the following items of income and expense: Income:

Salary - $58,000
Cash dividends - 3,000
Interest income on City of New York bonds - 5,000
Interest income on U. S. Treasury bills - 4,000
Net rental income (not QBI) - 3,500
Alimony received from ex-husband - 2,500
Child support received from ex-husband - 3,500
Life insurance proceeds received on the death of her mother - 100,000

Sales of Capital Assets:

Stock held for 3 months (basis is $12,000) sold for 18,000
Investment land held 5 years (basis is $30,000) sold for 14,000

Expenses:

Interest on the $150,000 principal from her home acquisition mortgage - 6,000
Real property taxes on the home - 2,000
Charitable contributions - 7,000
Qualifying child care expense - 3,700
Federal income tax withheld - 6,000

Required:
a. Compute Kelly’s taxable income.
b. Compute her net tax due or refund expected for 2017.

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Kelly Martin divorced in 2017; her 6-year-old child, Barbara, lives with her and is her dependent. K...
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