Randy and Sharon are married and have two dependent children. Their 2023 tax and other related information is as follows: a. Total salaries $160,000 b. Bank account interest income 3,500 c. Municipal bond interest income 1,500 d. Value of employer provided medical insurance 12,500 e. Employer paid premiums for $50,000 of group term life insurance 5,500 f. Dividend income from ABC stock 2,000 g. Loan from Randy’s parents 5,000 h. Gift from Randy’s parents 15,000 i. Gain from the sale of qualified small business stock acquired in 2008 18,000 j. Total itemized deductions 30,500 For each item shown, indicate the amount $0 or the amount of taxable income or the deduction.  Also, provide the total taxable income.

Theo’s wife moved overseas in April, and they have not been in touch, although they are still legally married. Theo pays all the costs of the household which includes his 12-year-old son. Because Theo is still married, his only option is to file his tax return as married filing separately.

Mobile imaging may be necessary in which of the following locations?

Norah, who gives music lessons, is a calendar-year taxpayer using the cash-basis accounting. On October 1 of this year, she received $1,200 for a one-year contract beginning on that date to provide 10 lessons. She gave 6 lessons this year. How much should Norah include in income this year?

In 2021 Bonnie, a sole proprietor, loaned her employee, John, $10,000 to help him buy a car. In 2023, before he repaid the $10,000, Bonnie told John that she was “tearing up” the $10,000 note in recognition of his strong job performance. How should John treat the amount forgiven?

Parents must provide more than half the support of their child under the age of 19 in order for the child to be considered as a dependent qualifying child.

Choose the two (2) forms of verbal skills:

Amy’s employer provides her with several fringe benefits. Which of the following are included in her taxable income?

Kate is single and a homeowner. In 2023, she has property taxes on her home of $4,000, pays state income taxes of $5,000, makes charitable contributions of $3,000, and pays home mortgage interest of $6,000. Kate’s adjusted gross income for 2023 is $77,000.Required: Compute her taxable income for 2023. Please show supporting computations.

A taxpayer sells an asset with a basis of $25,000 to an unrelated party for $28,000. The taxpayer has a realized gain of $3,000.