1) F, a single taxpayer, age 42, had income and expenses as follows for 2020: Total income $33,000 Exclusions (municipal bond interest) 2,000 Deductions for A.G.I. 1,200 Total itemized deductions 18,020 Standard deduction 12,400 What are F’s adjusted gross income and her taxable income, respectively?
a. $29,800; $11,780
b. $29,800; $17,400
c. $29,800; $620
d. $33,000; $14,980
2) G is an eleven-year-old heiress whose share of income from various sources is as follows for the current year:
G’s Share of
Entity’s G’s Share of
Source Net Income Distributions
LM Trust $45,000 $30,000
ABC Partnership 80,000 22,000
XYZ Corporation, a C corporation 480,000 76,000
Interest from bank savings account 50,000
G’s A.G.I. (ignoring the deduction for one-half of any self-employment tax, if any) is how much?
a. $178,000
b. $605,000
c. $251,000
d. $236,000
