Just for professor Ryan

Problem I: 2-30

Computation of Taxable Income: The following information relates to Tom, a single taxpayer, age 18

Salary                                            $1800

Interest income                            1,600

Itemized deduction                     600

1. Compute Tom’s taxable income assuming he is self-supporting.

2. Compute Tom’s taxable income assuming he is dependent of his parent.

Problem I: 2-31

Joint versus Separate Returns: Carl and Carol have salaries of $ 1,400 and $22,000, respectively. Their itemized deductions total $8,500. They are married and both are under age 65.

1. Compute their taxable income assuming they file jointly.

2. Compute their taxable income assuming they file separate returns and the Carol claims all of the itemized deductions.

Problem I: 2-34

Dependency Exemptions: John and Carole file a joint return and have three children: Jack, age 23; David, age 20; and Kristen, age 15. All three children live at home the entire year.