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Kelly is single. Her dependent child, Barbara, lives with her. After her divorce, Kelly was awarded the permanent custody of Barbara and has not agreed to waive her right to claim Barbara as a dependent. Kelly has the following items as income and expenses as you can see in the attached document.
Compute Kelly's taxable income and her net tax due or refund expected for 2011

Income:
Salary $60,000
Cashdividends 3,000
Interest income onCity of New Yorkbonds 5,000
Interest income on U.S. Treasury bills 4,000
Net rental income 3,500
Alimony received from ex-husband 2,500
Child support received from ex-husband 3,500
Sales of capital assets:
Stock held for 3 months (basis is $12,000) sold for 18,000
Investment land held 5 years (basis is $30,000) sold for 14,000
Life insurance proceeds received on the death of her...100000
Expenses:
Home mortgage interest 6,000
Property taxes on home 2,000
Charitable contributions 7,000
Qualifying child care expense 3,700
Federal income tax witheld $7000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M955188

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