Question

Compute the taxable income for 2017 for Aiden on the basis of the following information. Aiden...

Compute the taxable income for 2017 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2015.

Salary $80,000
Interest on bonds issued by City of Boston 3,000
Interest on CD issued by Wells Fargo Bank 2,000
Cash dividend received on Chevron common stock 2,200
Life insurance proceeds paid upon death of aunt (Aiden was the designated beneficiary of the policy) 200,000
Inheritance received upon death of aunt 100,000
Jackson (a cousin) repaid a loan Aiden made to him in 2011 (no interest was provided for) 5,000
Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and charitable contributions) 9,700
Number of dependents (children, ages 17 and 18, and mother-in-law, age 70) 3
Age 43

d.   Aiden's taxable income in 2017 is $

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Answer #1

Number of dependents = 4050*3 = 12150

Aiden's taxable income in 2017 is $ 49700.
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