McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 38

Camille Sikorski was divorced last year.She currently owns and provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker.Both children lived in Camille's home for the entire year and Camille paid for all the costs of the maintaining the home.She received a salary of $105,000 and contributed $6,000 of it to a qualified retirement account.She also received $10,000 of alimony from her former husband.Finally, Camille paid $5,000 of expenditures that qualified as itemized deductions.The current year is 2011.a.What is Camille's taxable income?
b.What would Camille's taxable income be if she incurred $14,000 of itemized deductions instead of $5,000?
c.Assume the original facts except that Camille's daughter Kaly is 25 years old and a full-time student.Kaly's gross income for the year was $5,000.Kaly provided $3,000 of her own support and Camille provided $5,000 of support.What is Camille's taxable income?