1. Tonya had the following items for last year: Salary Short-term capital gain N
ID: 2583460 • Letter: 1
Question
1. Tonya had the following items for last year: Salary Short-term capital gain Nonbusiness bad debt Long-term capital gain $40,000 12,000 (23,000) 8,000 For the current year, Tonya had the following items: Salary Collection of last year's bad debt $45,000 23,000 Determine Tonya's adjusted gross income for the current year 2. Maria, who is single, had the following items for 2017: Salary Loss on sale of § 1244 small business stock acquired 3 years ago Stock acquired 2 years ago became worthless during the year Long-term capital gain Nonbusiness bad debt $80,000 (60,000) (5,000) 25,000 (15,000) (6,000) 4,000 Casualty loss on property held 6 months Casualty gain on property held 4 years Determine Maria's adjusted gross income for 2017. 3. Sandra sold 500 shares of Wren Corporation to Bob, her brother, for its fair market value. She had paid $2 stock. Calculate Sandra's and Bob's gain or loss under the following circumstances: a. Sandra sold the shares to Bob for $20,000. One year later, Bob sold them for $18,000. b. Sandra sold the shares to Bob for $30,000. One year later, Bob sold them for $27,000 c. Sandra sold the shares to Bob for $20,000. One year later, Bob sold them for $28,000. 4. Juanita, single and age 43, had the following items for 2017 S60,000 6,000 (15,000) (5,000) (8,000) 9,000 (13,000) (9,000) Salary Interest income Casualty loss on business property Casualty loss on rental property Loss on theft of securities Personal casualty gains Personal casualty loss (after $100 floor) Other itemized deductions Compute Juanita's taxable income for 2017 Copyright Cengage Learning Powered by CogneroExplanation / Answer
SOLUTION
1. Tonya's adjusted gross income for the current year-
Income on collection of non business bad debt (classified as STCL) to the extent of tax benefit in the prior year ($20,000 offset against capital gain and $3,000 offset against ordinary income).
Amount ($) Salary 45,000 Income under tax benefit rule 23,000 Long-term capital loss carryover (2,000) AGI 66,000Related Questions
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