Hope Is a Marketing Manager at a Local Company $$\text { Income received }$$

question 4

Essay

Hope is a marketing manager at a local company. Information about her 2016 income and expenses is as follows:
$$\text { Income received }$$
$\begin{array}{|l|c|}\hline \text { Income received } & \\\hline \text { Salary } & \$ 150,000\\\hline\text { Taxes withheld from salary: } \\\text { Federal income tax }\quad \quad \$ 30,000 \\\text { State income tax } \quad \quad \quad 8,000 \\\text { Social Security tax } \quad \quad 7,347 \\\text { Medicare tax } \quad\quad \quad \quad 2,175\\\hline \text { Interest income from bank } & 6,000 \\\hline \text { Dividend income from U.S.stocks } & 4,000 \\\hline \text { Short-term capital gain } & 2,000 \\\hline \text { Long-term capital gain } & 3,000 \\\hline \text { te income taxrefund from last year } & 500\\\hline \text { penses paid: } & \\\hline \text { Unreimbursed dental and eyecar } & \$ 1,800 \\\hline \text { Property taxes on her home } & 3,900 \\\hline \text { Fees paid to town for garbage pick-up } & 400 \\\hline \text { Stock donated to American Red Cross; FMV } \$ 5,000 \text {; purchased } \\\text { three years ago for } \$ 3,100 &\\\hline \text { Dues paid to American Marketing Association } & 600 \\\hline \text { Subscription to professional marketing journals } & 300 \\\hline \text { Fee for preparation of } 2015 \text { tax return and IRS audit assistance } & 2,000 \\\hline \text { Investment advisor fee } & 1,000 \\\hline \text { Home mortgage interest } & 10,000 \\\hline \text { Interest on borrowing to purchase investment assets } & 11,000 \\\hline \text { Interest on car loan } & 1,100\\\hline\end{array}$ Compute Hope's taxable income for the year in good form. Show all supporting computations. Hope is single, and she elects to itemize her deductions each year. Assume she does not make any elections regarding the investment interest expense. Also assume that her tax profile was similar in the preceding year.

---

Definitions:

Generalized Transfer

The application of skills, knowledge, or competencies acquired in one context to different, but related, contexts or situations.

Learning

The acquisition of knowledge or skills through study, experience, or being taught.

Social Cognitive Theory

A framework for understanding, predicting, and changing human behavior, emphasizing the role of observational learning, self-efficacy, and the social environment.

Self-Efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish a task.