Comprehensive Problem (Tax Return Problem). Rodney and AliceJones have three small children, ranging in age from 5 to 10. Onechild is blind and needs special care. Rodney works as anaccountant for a large CPA firm and has gross income of $45,000.Alice is a lawyer with a national law firm and earns $48,000.Rodney’s parents are quite old, and he and his wife fully supportthem.
Rodney’s employer provides group-term life insurance at twicethe employee’s annual salary. Rodney is 40 years of age.
During 2018, Rodney and Alice receivethe following dividends on their jointly held investments:
Dividends from Mexico Inc. (Mexican Corp.) $700
Dividends from Widget Steel Corp. $150
They received interest income from the following investments:Interest on State of Ohio highway bonds $800
Interest on deposits in savings and loans $400
The Joneses have itemized deductions of $25,000. Compute theirtaxable income. * NOTE: THIS IS FOR 2018*
