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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Problem 11-55 (LO. 3, 8, 11)
Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live together in Montana
(not a community property state). Because Jake has large medical expenses, they seek your advice about
filing separately to save taxes. Their income and expenses for 2023 are as follows:
Bonnie's salary
$42,500
Jake's salary
26,000
Interest income (joint)
1,500
Rental loss from actively managed rental property
(23,000)
Jake's unreimbursed medical expenses
8,500
All other itemized deductions:"
Bonnie
Jake
"None subject to limitations
19,000
6,400
Determine whether Bonnie and Jake should file jointly or separately for 2023.
Click here to access the tax rate schedule.
Round the total tax to the nearest dollar.
Bonnie
Jake
Joint
AGI
43,250
26,750
47,000
Total itemized deductions $
19,000
12,894
30,375
Taxable income
24,250
13,856
16,625 ✔
Tax
2,720 X
1,614 X
Should Bonnie and Jake file jointly or separately for 2023?
Jointly
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