Compute what is melvin and ava agi and taxable income

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Reference no: EM132714144

Melvin?, a? self-employed consultant, incurs the following? business-related expenses in 2020?:

Actual Automobile Expenses $2900

Moving Expenses 4200

Entertainment Expense 1100

Travel Expenses 3250

Business meals 300

Dues and subscriptions 650

Melvin earned $126,000 of gross income from his consulting business and had $8,000 of interest and dividend income in 2020 before any of the above expenses are deducted. He has $15,000 of itemized deductions. Melvin is married and files a joint return with his? wife, Ava?, who has no income.

Requirement:

Problem 1: What is Melvin and Ava's AGI and taxable income amount in 2020, assuming he is married and files a joint return, and ignoring the self-employment tax? (Ignore the Qualified business income deduction)

Reference no: EM132714144

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