Theresa and Oliver,married Filing Jointly,and Both Over 65 Years of Age,have

question 71

Essay

Theresa and Oliver,married filing jointly,and both over 65 years of age,have no dependents.Their 2017 income tax facts are:
What is their taxable income for 2017?

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Definitions:

Finished Goods Inventory

Refers to the inventory of goods that are completed and ready for sale.

Cost of Goods Manufactured

The total expense incurred in manufacturing goods, including materials, labor, and overhead, up to the point of completion.

Raw Materials

Primary components used to produce or fabricate products.

Direct Labor

The wages and expenses directly associated with workers who physically produce goods or provide services.