Andrew, who is single, retired from his job this year. He received a salary of $26,000 for the portion of the year that he worked, tax-exempt interest of $2.600, and dividends from domestic corporations of $3,700. On October 1, he began receiving monthly pension payments of $700 and Social Security payments of $500. Assume an exclusion ratio of 40% for the pension. Andrew owns a duplex that he rents to others. He received rent of $11,000 and incurred $16,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job. Requirement Compute Andrew's adjusted gross income Salary Dividend income Rental income Social security income (taxable portion) Pension income (taxable portion) Gross income Minus: Deductions for Adjusted gross income Rental income Adjusted gross income 26.000 3,700 11,000 -16,000

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.