Q.2- Mr. X and Mrs. Y are married and have two dependent children. P & Q They also fully support Mrs. Y’s mother who liv
Posted: Tue Nov 16, 2021 9:09 am
Q.2- Mr. X and Mrs. Y are married and have two dependent
children. P & Q They also fully support Mrs. Y’s mother who
lives with them and has no income. Their 2014 tax and other related
information is as follows: (2 marks)
Particulars
Amount in $
Total salaries
320,000
Bank account interest income
7,000
Municipal bond interest income
3,000
Value of employer provided medical insurance
11,000
Value of premiums for $ 100000 of group term life insurance
provided by employer
1,000
Gift from X’S parents
30,000
Gain from the sale of qualified small business stock acquired in
2008
30,000
Total itemized deductions
32,000
Dividend income—from ABC stock,
4,000
Loan from X’S parents
10,000
Required: Compute Mr. X and Mrs. Taxable
income. (Show all calculations in proper /good form.)
children. P & Q They also fully support Mrs. Y’s mother who
lives with them and has no income. Their 2014 tax and other related
information is as follows: (2 marks)
Particulars
Amount in $
Total salaries
320,000
Bank account interest income
7,000
Municipal bond interest income
3,000
Value of employer provided medical insurance
11,000
Value of premiums for $ 100000 of group term life insurance
provided by employer
1,000
Gift from X’S parents
30,000
Gain from the sale of qualified small business stock acquired in
2008
30,000
Total itemized deductions
32,000
Dividend income—from ABC stock,
4,000
Loan from X’S parents
10,000
Required: Compute Mr. X and Mrs. Taxable
income. (Show all calculations in proper /good form.)