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Topic
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Hello,
I have 2011 Wiley Test Bank, Does anyone recommend I buy the 2012 one?
Can someone explain why they didnt include the inheritance? Isn’t that subject to 13,000 limit just like the gift tax?
Or is this not included because my Wiley outdated? Is 2011 already outdated?
Please help
Lore
In the current year Jensen had the following items:
Salary
$50,000
Inheritance
25,000
Alimony from ex-spouse
12,000
Child support from ex-spouse
9,000
Capital loss on investment stock sale
(6,000)
What is Jensen’s AGI for the current year?
A. $44,000
B. $59,000
C. $62,000
D. $84,000
Answer B is correct. The requirement is to determine Jensen’s AGI for the current year. Jensen’s AGI consists of the $50,000 salary plus the $12,000 alimony received, less a deduction for a net capital loss which is limited to $3,000. The inheritance and child support that Jensen received are excluded from gross income.
FAR - 76
AUD - 74,84 🙂
REG - 76
BEC - 72, 80Roger's CPA Review
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