This year Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $75,300 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) $ 1,200 Interest paid on accumulated student loans 2,900 Cost of purchasing a delivery uniform 1,500 Contribution to State University deliveryman program 1,350 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan’s student loans this yea

Evan's AGI is $ 66,000 and his taxable income is $ 54,000

Explanation:

To calculate the AGI you have to perform the following:

Salary                                                                                                 $ 67,300

work hourly pay                                                                                     $ 700

Gross pay                                                                                             $68,000

Modified AGI                                                                                       $ 68,000

AGI                                                                                                          $66,000

Next, to calculate the taxable income you have the follwong substraction

AGI                            $ 66,000

Standard deduction   $12,000

Personal deduction         0        

Taxable Income         $ 54,000

pay for the $190,000 new home in full and invest the extra $110,000 in high yielding blue chip preferred stocks to provide retirement income

Explanation:

The couple should pay for the $190,000 new home in full and invest the extra $110,000 in high yielding blue chip preferred stocks to provide retirement income since it seems the couple are looking for additional or extra retirement income which is why it is best for the couple to Invest in high yielding blue chip preferred stocks which gives income and safety, along with the benefit of a low 15% maximum tax rate on cash dividends received.

Therefore this is the best choice for the couple because it will help them to have a better retirement extra income.