roblem Calculate Adjusted gross income for Sarah Smith based on the following information: salary $200,000
I. Problem
Calculate Adjusted gross income for Sarah Smith based on the following information:
salary $200,000
child support received $20,000
capital loss $5,000
Interest on State of California bonds $20,000
Interest on Federal treasury bonds $10,000
Sole proprietorship net income $40,000
Sarah received a gift of $10,000 from her father.
Contribution to Individual Retirement Account $1,000
Sarah's brother Samuel paid back a $10,000 loan from 2015
Contribution to health savings account $1,000
Penalty for early withdrawal from a timed savings account $1,000.
Rental income $20,000
Sarah found a ring with a fair market value of $2,000 on the bus.
Sarah won $1,000 in scratch of lotto
Sarah won $500 in a baking contest.
Sarah had qualified student loan interest of $1,000
Sarah received alimony of $40,000 divorce decree signed in 2012
Sarah received a legal settlement of $20,000 in payment for a broken ankle she incurred during a ferris wheel accident.
Sarah received life insurance payment of $100,000 due to the death of her great grandmother.
Sarah inherited $50,000 from her great aunt.
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