Steven, age 35, is a single commodities broker. His salary for 2009 is $110,000 and he has taxable interest income of $40,000. He has no deductions for adjusted gross income. His itemized deductions are $30,000. Steven does not have any dependents.
a. What is the amount of his adjusted gross income?
b. What are his allowable itemized deductions?
c. What is his deduction for personal exemptions?
d. What is his taxable income?
e. What is his regular tax liability from the 2009 tax rate schedules?
Choose the best answer from the following:
Use year 2009 exemption and standard deduction amounts.