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Fall 2026-92241-202690-ACC313-01 - Income Tax Planning Ind & Bus

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Joanna received $60,000 compensation from her employer (no overtime), the value of her stock in ABC company appreciated by $5,000 during the year (but she did not sell any of the stock), and she received $30,000 of life insurance proceeds from the death of her spouse. What is the amount of Joanna's gross income from these items?

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Which of the following is NOT a from AGI deduction?

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Which of the following types of income are not considered ordinary income?

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Jan and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. Jan and Ed file a joint tax return. In 2026, Jan and Ed realized the following items of income and expense:

ItemAmount
Jan's Salary$ 70,000
Ed's Salary35,000
Municipal bond interest income400
Qualified business income1,000
Alimony paid (pre-2019 divorce decree)(7,000)
Real property tax (from AGI deduction)(16,000)
Charitable contributions(18,000)

They also qualified for a $2,200 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2026 standard deduction amount for married filing jointly taxpayers is $32,200. 

What is the couple's AGI? Enter answer as $XX,XXX

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This year Ed celebrated his 25th25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a gold watch worth $363 and a $2,190 cash bonus. What amount must Ed include in his gross income?

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Sadie received $66,600 of compensation from her employer (including $2,000 of qualifying overtime compensation eligible for the qualified overtime compensation deduction) and she received $450 of interest from a corporate bond. What is the amount of Sadie's gross income from these items?

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Joyce's employer loaned her $50,000 this year (interest-free) to buy a new car. If the federal interest rate was 3 percent, which of the following is correct?

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John Maylor is a self-employed plumber of John's John Service, his sole proprietorship. In the current year, John's John Service had revenue of $120,000 and $40,000 of business expenses. John also received $2,000 of interest income from corporate bonds. What is John's adjusted gross income, assuming he had no other income or expenses?

Note: Ignore any deduction for self-employment tax.

Enter Answer as follows $xx,xxx no cents. 

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Which of the following statements regarding for AGI tax deductions is true?

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Jan and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. Jan and Ed file a joint tax return. In 2026, Jan and Ed realized the following items of income and expense:

ItemAmount
Jan's Salary$ 70,000
Ed's Salary35,000
Municipal bond interest income400
Qualified business income1,000
Alimony paid (pre-2019 divorce decree)(7,000)
Real property tax (from AGI deduction)(16,000)
Charitable contributions(18,000)

They also qualified for a $2,200 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2026 standard deduction amount for married filing jointly taxpayers is $32,200. 

What is the couple's tax due or tax refund? Must enter $ amount and word "tax due" or "tax refund"    

(Use the tax rate schedules (opens in a new tab), not tax tables.)  

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