Hope Is a Marketing Manager at a Local Company Compute Hope's Taxable Income for the Year in Good Form

question 94

Essay

Hope is a marketing manager at a local company.Information about her 2019 income and expenses is as follows:
$\begin{array}{|l|l|}\hline\text { Income received } & \\\hline \text { Salary } & \$ 150,000\\\text { Taxes withheld from salary: }\\\begin{array}{lr}\text { Federal income tax } & \$ 30,000 \\\text { State income tax } & 9,000 \\\text { Social Security tax } & 8,209 \\\text { Medicare tax } & 2,175 \\\end{array}\\\hline \text { Interest income from bank } & 6,000 \\\hline \text { Dividend income from U.S. stocks } & 4,000 \\\hline \text { Short-term capital gain } & 2,000 \\\hline \text { Long-term capital gain } & 3,000 \\\hline \text { State income tax refund from lastyear } & 500 \\\hline \text { Expenses paid: }\\\hline \text { Unreimbursed dental and eyecare costs } & \$ 1,800 \\\hline \text { Property taxes on her home } & 3,900 \\\hline \text { Fees paid to town for garbage pick-up } & 400 \\\hline\text { Stock donated to American Red Cross; FMV } \$ 5,000 \text {; }\\\text {purchased three years ago for } \$ 3,100\\\hline \text { Home mortgage interest } & 10,000 \\\hline \text { Investment interest expense } & 11,000 \\\hline \text { Interest on car loan } & 300\\\hline\end{array}$ 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.

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Definitions:

Semiperipheral Countries

Such as South Korea, Taiwan, and Israel, consist of former colonies that are making considerable headway in their attempts to industrialize.

Gross National Product

The total value of all goods and services produced by a country's residents and businesses, regardless of where the production takes place, over a specific time period.

Gross Domestic Product

The total value of all goods and services produced within a country over a specific time period, a primary indicator of economic health.

Colonies of Japan

Territories that were under Japanese imperial control from the late 19th century through the mid-20th century, including Korea, Taiwan, and parts of China.