Question

Part 1: Bob Parker has the following items of income for 2017. Based on these items, please calculate Bob’s adjusted gross income (AGI). In addition, cite your reference to substantiate your rationale for each item.

Wages from employer	55,000
Interest from municipal bonds	1,250
Dividend income from ABC stock	750
Capital loss from stock transactions	5,000
Interest from savings account	500
Amount received as life insurance beneficiary	25,000
Trip awarded to Bob for meeting sales quota	5,000
Contributed to IRA	2,500
Alimony paid	12,000
Early withdrawal penalty on savings account	50
Loss due to damage on personal vehicle	1,000

Requirements

Clearly identify the requirements being addressed. Show all calculations within the cells of an MS Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well; no hard coding of solutions. Submit a single MS Excel file for grading.

Answer 1

Answer:-

Here,we have to find the adjusted gross income(AGI):-

Here, we used these following formulas for finding the amount of adjusted gross income(AGI)

• capital loss from stock transactions =5000 - ( interest from municipal bonds + dividend income from ABC stock )

Actual gross income =( wages from employer + amount received as life insurance beneficiary ) - interest from saving account   =( 55,000 + 25,000) - 500

Actual gross income = $79,500

finally, Adjusted gross income = 79,500 - (5,000 + 2,500+12,000+50+1,000)

=79,500 - 20,550

  

​Adjusted Gross Income(AGI) =$58,950