Business Finance Homework Help

Part1

Ivette received Social Security benefits during the current year of $16,400. Ivette’s only other sources of income were wages of $14,000, interest income from corporate bonds of $4,500,
and taxable domestic dividends of $1,100. Ivette is single, 72-years of age, and has no dependents.
a. Calculate Ivette’s AGI.

b. What would be Ivette’s AGI if Ivette also had tax-free municipal bond interest income of $9,600.

Part2
Sebastian had a rather good year in 2020. Sebastian is unmarried and provides over one-half of the support for his 39-year-old roommate who legally lives in the home for the entire year.
Sebastian had the following for 2020:
Salary $61,744
Interest income $8,875
Rental income $22,350
Rental expenses -$12,350
QBI deduction from AGI -$2,000
Standard deduction -$12,400
Itemized deductions -$13,700
Calculate Sebastian’s adjusted gross income, taxable income, and net income tax before prepayments.