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xxTIMURxx [149]
3 years ago
15

Jim and Pat are married and file jointly. In 2015, Jim earned a salary of $46,000. Pat is self employed. Her gross business inco

me was $49,000 and her business expenses totaled $24,000. Each contributed $5,000 to a deductible IRA. Their itemized deductions totaled $13,000. Compute parts a, b, and c without regarding to self employment tax.
A. Compute their gross income
B. Compute their adjusted gross income
C. Compute their taxable income assuming they have a dependent daughter.
Business
1 answer:
UkoKoshka [18]3 years ago
7 0
Their total gross income is $46,000 + $49,000 = $95,000
Their total expenses is the sum of the expenses from Pat's business, $24,000
plus $5,000 each for IRA contribution, and itemized deductions of $13,000. Total expenses is $47,000. Thus, their adjusted gross income is $48,000. 
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