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Joe & Janet Taxpayer had the following items of income and deductions: wages, $95,000, federal...

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Accounting

  1. Joe & Janet Taxpayer had the following items of income and deductions: wages, $95,000, federal withholding, $30,000, state withholding, $10,000; gambling winnings, $5000; property taxes, $6,000; charitable donations, $2,000; DMV fees (deductible) $500; mortgage interest on loan to purchase home, $18,000; home equity loan interest on $30,000 loan to purchase a car, $3,000; business miles, 12,000 (assume the standard mileage rate is $.50); tax preparation fees, $1,000; gambling losses, $8,000; Joe exercised 1000 stock options on 9/1 when the market price of the stock was $12. His option price was $2. As of 12/31 he still owned the stock, and the price at that day was $20. Calculate Federal taxable income and Federal alternative minimum taxable income before exemptions. Assume that the Taxpayers have no children. You do not need to compute the actual tax.

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