Answer:
Betty's AGI = $28,934
Complete Page 1 of Form 1040 for Betty is attached.
Explanation:
<u>Adjusted gross income:</u>
Adjusted gross income (AGI) is an income measurement for the purpose of calculation of tax payable.
AGI is calculated by deducting allowable deduction from taxable income.
<u>Notes for the working attached:</u>
- The salaries and expenses are deductible as business expenses.
- Depreciation and real estate taxes are deducted as rental/royalty-related deductions.
- Interest income is included in the adjusted gross income.
- Alimony expenses are deductible from the adjusted gross income.
- The revenue from apartment building is assumed as interest income and NOT the total income.
- The real estate and charitable contributions are itemized deductions.
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Answer:
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Explanation: