Compute Steve's taxable income for 2018. Show all calculations.

Steve Greene, age 66, is divorced with no dependents. In 2018, Steve had income and expenses as follows:

Gross income from salary $80,000
Total itemized deductions 5,500


Business

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The Safety Chemical Company produces a special kind of body oil that is widely used by professional sports trainers. The oil is produced in three processes: Refining, Blending, and Mixing. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed.The following Work-in-Process account for the Refining Department is available for the month of July. The July 1 Work-in-Process balance contains $1,500 in material costs.Work-in-Process: Refining    Beginning balance (5,000 gallons, 80% complete)$7,500 Materials (30,000 gallons) 12,300 Direct labor 14,500 Overhead 21,750 Ending balance (6,000 gallons, 2/3 complete)   The Safety Chemical Company uses first-in, first-out

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Business

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Business