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In 2005, Mr. Earl, a single taxpayer, contributed $45,000 in exchange for 500 shares of...

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Accounting

In 2005, Mr. Earl, a single taxpayer, contributed $45,000 in exchange for 500 shares of DB stock. In 2008, he paid $40,000 to another shareholder to purchase 1,000 more DB shares. All DBs stock qualified as Section 1244 stock when it was issued. This year, Mr. Earl sold all 1,500 DB shares for $16 per share. His only income item was his $80,000 salary. Assume the taxable year is 2022. Required: Compute Mr. Earls AGI. What is Mr. Earls AGI if he also recognized a $20,000 capital gain on the sale of other securities?

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