Answered: Thomas, a calendar year

Business

Accounting

Thomas, a calendar year

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 24CE

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Concept explainers

Budgeted Income Statement

Accounting is the process of recording business-related financial transactions. The process of accounting involves summarizing and analyzing the transactions. The financial statements which are prepared in accounting contain a summary of the various transactions that took place within a certain accounting period. Book-keeping or accounting is one of the most important activities of any business.

Question

Thomas, a calendar year cash basis taxpayer, has the following transactions: Salary from job $50,000 Alimony paid to ex-wife (divorce after 2018) 9,000 Medical expenses 4,500 Charitable contributions 2,000 Based on this information, Thomas has: AGI of $34,500. AGI of $41,000. AGI of $50,000. Medical expense deduction of $3,075. None of the above.

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