MrAnd MrsBachman,both Age 65,file a Joint Return

question 46

Essay

Mr.and Mrs.Bachman,both age 65,file a joint return.In 2013 they have wages of $30,000,dividends of $6,200,municipal bond interest of $3,000 and received $10,300 for the sale of stock that cost $4,000 in 1992.They made a $3,000 contribution to their Roth IRA,paid $4,100 in deductible mortgage interest and real estate taxes and made a $2,500 charitable contribution.What is their gross income,adjusted gross income,and taxable income?

---

Definitions:

Employee

An individual who performs work under the direction and control of an employer in exchange for compensation.

Reasonable Skill

The level of competence that one can expect from a person with the standard abilities and knowledge in a particular field.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract without a lawful excuse.

Agency Contract

A legal agreement where one party, the agent, agrees to act on behalf of another, the principal, in business dealings.