Germaine was employed during the first six months of 2021 and earned an $80,000 salary. During the next six months, he collected $7,200 of unemployment compensation. He borrowed $6,000 (using his personal residence as collateral) and withdrew $1,000 from his savings account (on which he had earned $60 interest). Germaine’s parents loaned him $8,000 (interest-free) on July 1 of the current year, when the federal rate was 3%. Germaine did not repay the loan during the year and used the money for living expenses. Please calculate Germaine’s adjusted gross income for the year.
Germaine was employed during the first six months of 2021 and earned an $80,000 salary. During the next six months, he collected $7,200 of unemployment compensation. He borrowed $6,000 (using his personal residence as collateral) and withdrew $1,000 from his savings account (on which he had earned $60 interest). Germaine’s parents loaned him $8,000 (interest-free) on July 1 of the current year, when the federal rate was 3%. Germaine did not repay the loan during the year and used the money for living expenses. Please calculate Germaine’s adjusted gross income for the year.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter10: Individuals: Income, Deductions, And Credits
Section: Chapter Questions
Problem 16P
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Germaine was employed during the first six months of 2021 and earned an $80,000 salary.
During the next six months, he collected $7,200 of
He borrowed $6,000 (using his personal residence as collateral) and withdrew $1,000 from his savings account (on which he had earned $60 interest).
Germaine’s parents loaned him $8,000 (interest-free) on July 1 of the current year, when the federal rate was 3%.
Germaine did not repay the loan during the year and used the money for living expenses.
Please calculate Germaine’s adjusted gross income for the year.
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