Stephanie and Matt Are Married with 2 Dependent Children

question 134

Essay

Stephanie and Matt are married with 2 dependent children.During 2013,they have total gross income of $140,000.Their allowable deductions for adjusted gross income total $6,000 and they have $6,000 of allowable itemized deductions.Compute Stephanie and Matt's 2013 taxable income and 2013 income tax liability.
a.Assume that in addition to the above information,Stephanie sold some land that she had held as an investment at a gain of $5,000.What is the effect of the gain on their taxable income and income tax liability? You do not need to recalculate,just explain the general effect of the sale of the land.
b.Assume the same facts as in part (a)and that Matt also sold some stock he purchased several years ago at a $12,000 loss.What is the effect of the gain on the land and the loss on the stock on their taxable income? Explain.

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Definitions:

Resistance

The reluctance or opposition to change, often manifesting in organizational settings when employees push back against new policies or changes.

Organizational Change

The process within an organization of implementing new methods, procedures, or technologies to adapt to internal or external shifts.

Negative Performance

Work behavior that fails to meet established standards or expectations, often leading to corrective action or performance improvement plans.

Biological Rhythms

Natural cycles in physiological processes or behaviors, such as the sleep-wake cycle or circadian rhythms.