Reference no: EM131612853

Given the following data, calculate the adjusted gross income (AGI) for David Brown's family. What are their total itemized deductions? How many personal exemptions do they receive, and how much does that save them in taxes if each exemption is worth $3,650 and they are in the 15 % marginal tax bracket? David is married and has two dependent children. Show all work for full credit. Make sure you account for each piece of data given.

W-2 Wages                                   $50,000

Mortgage Interest Paid                      6,500

Dividends Received                             500

Long-Term Capital Gains                   2,000

Long-Term Capital (Loss)                     500

Interest Income                                     50

State Tax Refund                                 300

Deductible IRA Contribution               5,000

Property Taxes Paid                           1,200

Rental Prop. Passive Income              2,500

Charitable Contributions                     5,000

Medical Expenses                             4,500

Alimony Paid to Ex Wife                    4,000

Unreimbursed Employee

Misc. Expenses                                   900