Kelly is single. Her dependent child, Barbara, lives with her. After her divorce, Kelly was awarded the permanent custody of Barbara and has not agreed to waive her right to claim Barbara as a dependent. Kelly has the following items as income and expenses as you can see in the attached document.
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
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
Life insurance proceeds received on the death of her mother 100,000
Expenses:
Home mortgage interest 6,000
Property taxes on home 2,000
Charitable contributions 7,000
Qualifying child care expense 3,700
Federal income tax withheld 7,000
Compute Kelly's taxable income and her net tax due or refund expected for 2011.