Compute the taxable income for 2013 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2010.
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 on death of Aunt Margie - $200,000 (Aiden was the designated beneficiary of the policy)
- Inheritance received on death of Aunt Margie - $100,000
- Jackson (a cousin) repaid a loan Aiden made to him in 2008 (no interest was provided for) - $5,000
- Itemized deducations (state income tax, property taxes on residence, interest on home mortgage, charitable contributions) - $9,000
Number of dependents: 3