Mark,a Cash-Basis Taxpayer,died on September 30,2017

question 55

Essay

Mark,a cash-basis taxpayer,died on September 30,2017.His wife,Charlotte,provides you with the following information.
From January 1,2017 until his death,Mark received a salary of $35,000.Charlotte received a salary of $68,000 during 2017.Mark had earned commissions of $20,000 which Charlotte received after his death.Charlotte was the beneficiary of a $100,000 whole life policy purchased by Mark and a $50,000 group term life insurance policy purchased by Mark's employer.The employer had paid premiums of $250 on Mark's behalf.In addition,the corporation paid Charlotte a $10,000 employee death benefit in Mark's name.All employees' families received similar benefits regardless of financial need.Mark and Charlotte had itemized deductions of $15,600.What is the amount of their taxable income on their 2017 tax return?

---

Definitions:

Income Taxes

Taxes on an individual's or corporation's income imposed by the government.

Modified Accelerated Cost Recovery System (MACRS)

The system of accelerated depreciation allowed for federal tax computations.

5-Year Asset

An asset that is expected to provide economic value or service for a period of five years.

Computers

Electronic devices designed to process, store, and communicate information, playing a crucial role in both personal and professional settings.