Question

Wallace, who is single, had the following items for the current year: • Salary of $90,000. • Gain of $30,000 on the sale of § 1244 stock acquired two years earlier. • Loss of $75,000 on the sale of § 1244 stock acquired three years earlier. • Worthless stock of $7,000. The stock was acquired on February 1 of the prior year and became worthless on January 15 of the current year. Wallace's AGI for the current year would be:

Answer 1

Wallace's AGI for the current year would be $38,000.

Step-by-step explanation:

AGI = salary + gain sale of stock - loss on sale of stock - stock worthless

= $90,000 + $30,000 - $75,000 - $7000

= $38,000

Therefore , Wallace's AGI for the current year would be $38,000.