### Calculate texs taxable income assuming he chooses engagement

Assignment Help Taxation
##### Reference no: EM13905720

Through November, Tex has received gross income of \$120,000. For December, Tex is considering whether to accept one more work engagement for the year. Engagement 1 will generate \$7,000 of revenue at a cost of \$4,000 which is deductible for AGI. In contrast, engagement 2 will generate \$7,000 of revenue at a cost of \$3,000, which is deductible as an itemized deduction. Tex files as a single taxpayer.

a) Calculate Tex's taxable income assuming he chooses engagement 1 and as- suming he chooses engagement 2. Assume he has no itemized deductions other than those generated by engagement 2.

b) Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has \$4,500 of itemized deductions other than those generated by engagement 2.

c) Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has \$7,000 of itemized deductions other than those generated by engagement 2.

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