question archive Carol, single and age 49, is a partner at a Big 4 public accounting firm and lives in Malibu, California
Carol, single and age 49, is a partner at a Big 4 public accounting firm and lives in Malibu, California
Subject:BusinessPrice: Bought3
Carol, single and age 49, is a partner at a Big 4 public accounting
firm and lives in Malibu, California. Her annual salary is $610,000. She has a portfolio of stock comprised of Tesla, Google, Facebook, Netflix, and Apple; all of which she has owned for more than one year. Apple is the only one of these stocks that pays dividends; she received $5,000 in dividends on her Apple stock in 2020. She had purchased 1,000 shares of Tesla stock on its IPO date on June 29, 2010 for $17 per share. In 2020 she decided to sell half of her shares at $900 per share because Tesla was at an all time high price. She purchased a home for $1,300,000 in 2016 with a down payment of $300,000 and a mortgage of $1,000,000. Her mortgage payments in 2020 were $56,600 and her property tax was $13,000. In 2020, she also paid $200 to renew her CPA license, she contributed $25,000 to her church, she paid $20,000 in state income tax, and she gave her mother a gift of $25,000 for Mother's Day. What is Carol's taxable liability for 2020?
