Compute the taxable income for 2012 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2010.
Salary |
$ 80,000 |
Interest on bonds issued by City of Boston |
3,000 |
Interest on CD issued by Wells Fargo Bank |
2,000 |
Cash dividend received on Chevron common stock |
2,200 |
Life insurance proceeds paid on death of Aunt Margie |
|
(Aiden was the designated beneficiary of the policy) |
200,000 |
Inheritance received on death of Aunt Margie |
100,000 |
Jackson (a cousin) repaid a loan Aiden made to him in 2008 |
|
(no interest was provided for) |
5,000 |
Itemized deductions (state income tax, property taxes on |
|
residence, interest on home mortgage, charitable |
|
contributions) |
9,000 |
Number of dependents (children, ages 17 and 18; |
|
mother in law, age 60) |
3 |
Age |
43 |