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Compute the couple's taxable income assuming they will use the standard deduction.

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12. Ron, age 64, is an account executive for Cobb Advertising, Inc. Ron's annual salary is $80,000. Other benefits paid by Cobb for Ron were;Health and accident insurance $1,500;Group-term life insurance Policy $120,000 in coverage;Payment of country club dues $3,660;Payment of dues to professional organizations and subscriptions to trade journals $550;Parking space in parking garage $3,120;Matching contributions to qualified pension plan. Ron contributes the maximum that will be matched - 5% of his salary. $4,000;Christmas cash bonus $125;Reimbursement for college course under a non-discriminatory plan $3,500;Ron is married to Raquel, age 65. Raquel retired last year. This year she received $20,000 in Social Security payments. Ron and Raquel also have income from these sources;Interest from joint savings account $980;Tax-exempt interest $1,000;Value of building inherited from Ron's grandfather $80,000;Rental income received from inherited building $2,820;Required;A. Compute the couple's taxable income assuming they will use the standard deduction.;B. Calculate their tax liability.

 

Paper#24245 | Written in 18-Jul-2015

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