Compute the taxable income for 2020 for Emily on the basis of the following information. Her filing status is single.

Salary $85,000

Interest income from bonds issued by Xerox 1,100

Alimony payments received (divorce occurred in 2014) 6,000

Contribution to traditional IRA 6,000

Gift from parents 25,000

Short-term capital gain from stock investment 2,500

Amount lost in football office pool 500

Age 40

b.Compute the taxable income for 2020 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2018.

Salary $ 80,000

Interest on bonds issued by City of Boston 3,000

Interest on CD issued by Wells Fargo Bank 2,000

Cash dividend received on Chevron common stock 2,200

Life insurance proceeds paid upon death of aunt (Aiden was the designated beneficiary of the policy) 200,000

Inheritance received upon death of aunt 100,000

Jackson (a cousin) repaid a loan Aiden made to him in 2014 (no interest was provided for) 5,000

Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and charitable contributions) 9,700

Number of dependents (children, ages 17 and 18, and mother-in-law, age 70) 3

Age 43