Randy and Sharon Are Married and Have Two Dependent Children

question 10

Essay

Randy and Sharon are married and have two dependent children.Their 2019 tax and other related information is as follows:
$\begin{array}{|l|r|}\hline \text { Total salaries } & \$ 160,000 \\\hline \text { Bank account interest income } & 3,5000 \\\hline \text { Municipal bond interest income } & 1,500 \\\hline \text { Value of emplover provided medical insurance } & 12,500\\\hline \text { Employerpaid premiums for } \$ 50,000 \text { of group term life insurance } & 5,500 \\\hline \text { Dividend income from ABC stock } & 2,000 \\\hline \text { Loan from Randy's parents } & 5,000 \\\hline \text { Gift from Randy's parents } & 15,000 \\\hline \text { Gain from the sale of qualified small business stock acquired in } 2008 & 18,000 \\\hline \text { Total itemized deductions } & 27,000 \\\hline\end{array}$ Compute Randy and Sharon's taxable income.(Show all calculations in good form.)

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Definitions:

Return On Equity

A financial ratio indicating the profitability of a firm in relation to its shareholders' equity, measuring how much profit is generated from the equity.

Return On Equity

calculates the amount of net income returned as a percentage of shareholders equity, measuring a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Common Stock

A form of equity security signifying an ownership stake in a company, granting the holder the right to participate in voting on corporate issues and to earn dividends.

Market Price

The present rate at which a service or asset is available for purchase or sale on an open market.