Question

QUESTION 32 For the current year, Harry reported salary and taxable interest income of $50,000. His capital asset transactions during the year were as follows: Long-term capital loss ($5,000) Long-term capital gain $1,000 For the current year, what amount should Harry report as sed gross income? a $50,000 ob $45,000 oc $45,000 . 547,000 None of the above QUESTION 33 Which, if any of the following statements does not correctly describe the kiddie tax a if the tax applies, it may be computed on a return filed for the child Any amount of reared income williger the tax It does not apply to a child who has no uneared income dit does not apply to a child who reaches age 19 during the tax year and is not a full-time student None of the above QUESTION 34 Under the terms of a divorce agreement entered into on or before 12/31/2018, Lanny was to pay his wife Joyce $2,100 per month in alimony and $300 per month in child support. For a twelve- month period, Lanny can deduct from gross income (and Joyce must include in gross income) O S28,800 $3,600 • $25,200 od $0 None of the above

Answer 1

Question - (32)

Answer -

Calculation of the Harry's Adjusted gross income for the current year

	Particulars	Explanation	Amount ($)
I.	Salary and taxable interest income	Given in question	50000
II.	Net Long-term capital loss	As per U.S. Internal Revenue Service, only $3000 of net capital loss can be deducted per year, and excess loss will be carry forward to future tax years.	3000
Adjusted Gross Income		I - II	47000