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
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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text: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
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