Assume Gail is a wealthy widow whose husband died last year. Her dependent daughter lives with her for the entire year. Gail has interest income totaling $370,000 and she pays property taxes and home mortgage interest totaling $20,000.
a. What filing status applies to Gail?
b. Compute her taxable income and gross tax.
c. Assume that Gail does not have a daughter. What is Gail's filing status?
d. Compute Gail's taxable income and gross tax assuming she does not have a daughter.