Maxine,who Is 76 Years Old and Single,is Appropriately Claimed as a Dependent

question 126

Essay

Maxine,who is 76 years old and single,is appropriately claimed as a dependent on her daughter Beth's tax return.During 2014 she received $500 interest on a savings account.She had a part time job that earned $3,000.Her total itemized deductions were $1,300.
Required: Compute Maxine's taxable income for 2014.Show all calculations.

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Definitions:

Voucher Payment

A method of payment where documentation is used to authorize and record a payment transaction.

Discount Period

The time frame in which a payment made towards a purchase is eligible for a discount, typically to encourage early payments.

Financial Statement

An official document detailing the financial transactions and status of a company, person, or different entity.

Normal Balance

The side (debit or credit) of an account that is normally increased. For assets and expenses, it is the debit side; for liabilities, equity, and revenue, it is the credit side.