Steven, Age 35 and Single, Is a Commodities Broker

question 55

Essay

Steven, age 35 and single, is a commodities broker. His salary for 2015 is $111,500 and he has taxable interest income of $40,000. He has no deductions for adjusted gross income. His itemized deductions are $31,000. Steven does not have any dependents.
a.What is the amount of his adjusted gross income?
b.What are his allowable itemized deductions?
c.What is his deduction for personal exemptions?
d.What is his taxable income?
e.What is his regular tax liability from the tax rate schedules?

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Definitions:

Adolescence

The phase of both physical and mental growth that typically happens between puberty and reaching the age of majority.

Pregnant

The condition of having a developing embryo or fetus within the body, as a result of the fertilization of an egg by a sperm.

Psychosocial Crisis

A turning point or critical period in an individual's life where an adjustment is necessary due to a challenge in social, emotional, or psychological development.

Ego Integrity

A sense of wholeness and fulfilled life achievements, typically sought in later adulthood, representing the final stage of Erik Erikson's psychosocial development theory.