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Jim Is Single and for 2011 Has AGI of $50,000

question 117

Essay

Jim is single and for 2011 has AGI of $50,000.He is age 75 and has no dependents.For 2011,he has itemized deductions from AGI of $7,000.Determine Jim's taxable income for 2011.


Definitions:

Drive Axle

An axle that is connected to the drive train and responsible for transferring power from the engine to the wheels.

Ring Gear

Spur gear such as that used on a flywheel for engine cranking, or the outer member of a planetary gearset.

Differential Case

The outer housing that encloses the differential mechanism in a vehicle, protecting its gears and components.

Differential Action

The mechanism in a vehicle's differential that allows two drive wheels to rotate at different speeds while turning, improving traction and handling.

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