Q.1- Mr. A and Mrs. B are married and have two dependent children. X & Y, They also fully support Mrs. B’s mother who li

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Q.1- Mr. A and Mrs. B are
married and have two dependent children. X & Y, They also fully
support Mrs. B’s mother who lives with them and has no income.
Their 2012 tax and other related information is as follows:
(2.5 marks)
Particulars Amount in
$
Value of premiums for $ 100000
of group term life insurance provided by employer

2,000
Gift from A’S
parents 60,000
Dividend income—from ABC
stock,
8,000
Loan from A’S
parents 20,000
Total salaries
640,000
Bank account interest income

14,000
Gain from the sale of
qualified small business stock acquired in
2010
60,000
Total itemized deductions

64,000
Municipal bond interest
income
6,000
Value of employer provided
medical insurance 22,000
Required: Compute Mr. A and
Mrs.B Taxable income. (Show all calculations in proper /good
form.)
PLEASE NO HAND writing. Thank
you.