Please Help Me With Accounting Problem?

Jim age 50 and Martha age 49 are married with 3 dependents. They file a joint return for 2005. Their income from salaries totals $140,000 and they recieved $10,000 in taxable interest, $5,000 in royalties and $3,000 of ordinary income. JIm and Martha's deductions for adjusted gross income amount to $3,200 and they have itemized deductions totalling $12,000, consisting of $7,500 in state income taxes and $4,500 in investment interest expense. Calculate the following amounts a. Gross income $-------------------- b. Adjusted gross income $-----------------
c. Itemized deduction or standeder deduction amount $-------------d. Number of exemptions -------------- e. Taxable income $--------------- f. Income tax liability $------------------- Thanks Alot Kay

Lord Z is right on A, C, and D.

But he messed up on B which led to E and F being wrong.

AGI is $154,800

Taking Lord Z answers from A, C, and D. You should be able to do the math for E. Then check the income tax tables for F.

Do your own dang homework Report It

I was going to help until I saw this was a tax issue. I work at a CPA firm, and this is the last thing I am supposed to be doing over there. SOrry! :D

a158,000
b149,800
c12,000
d 5
e131,800
f 27,228

First off, you really should do your own homework. It probably took you longer to type that all in then it would have been to look in the book and learn how to do it yourself. Us here at Yahoo!Answers aren't going to be able to take your test for you, so really you need to learn this yourself. Plus, it will actually help you later in life. Knowing basic tax skills and how the US Income tax works is very valuable to know.

And I wouldn't trust the answers you get here, for instance the guy who answered above me, Lord Z, is wrong on answer B, C, E, and F.

Do your own homework. What kind of crappy accountant do you want to be? There will come a time when you have to handle your own affairs for real and you won't know crap. Then you'll lose your butt in liability claims to your clients.

In not that, you'll lose your own butt because you can't handle your own finances.