Reference no: EM132519554

Kelly Martin is divorced; her child, Barbara, lives with her and is her dependent. Kelly has the following items of income and expense: Income: Salary $60,000 Cash dividends 3,000 Interest income on City of New York bonds 5,000 Interest income on U.S. Treasury bills 4,000 Net rental income 3,500 Alimony received from ex-husband 2,500 Child support received from ex-husband 3,500 Life insurance proceeds received on the death of her mother 100,000 Sales of Capital Assets: Stock held for 3 months (basis is $12,000) sold for 18,000 Investment land held 5 years (basis is $30,000) sold for 14,000 Expenses: Interest on the $150,000 principal from her home acquisition mortgage 6,000 Real property taxes on the home 2,000 Charitable contributions 7,000 Qualifying child care expense 3,700 Federal income tax withheld 6,000

Question a. Compute Kelly's taxable income.

Question b. Compute her net tax due or refund expected for 2019. (Round answer to 2 decimal places, e.g. 52.75.)