45. Tim and Sarah Lawrence are married and file a joint retum. Tim's Social Security number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-15-6788, and Debra's Social Security number is 123-45-6787. Tim is a self-employed businessperson (sole proprietor of an unincorporated business), and Sarah is a corporate executive. Tim has the following income and expenses from his business in 2019. Gross income $325,000 Business expenses 201,000 Records related to Sarah's employment provide the following information. Salary Unreimbursed travel expenses (including $200 of meals) $145,000 1,600 Other pertinent information for the tax year includes the following. Proceeds from sale of stock acquired on July 15, 2019 (cost of $12,000), and sold on August 1, 2019 Proceeds from sale of stock acquired on September 18, 2018 (cost of $5,000), and sold on October S5, 2019 $9,800 3,800 Wages paid to full-time domestic worker for housekeeping and child supervision 10,000 Interest income received 7,000 Total itemized deductions (not including any potential deductions above) 27,900 Federal income tax withheld 31,850 Estimated payments of Federal income tax 20,000 Compute the net tax payable or refund due for Tim and Sarah Lawrence for 2019.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

Please answer.just a try.it would be a great help

45. Tim and Sarah Lawrence are married and file a joint retum. Tim's Social Security
number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside
at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and
Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-15-6788, and
Debra's Social Security number is 123-45-6787. Tim is a self-employed businessperson
(sole proprietor of an unincorporated business), and Sarah is a corporate executive.
Tim has the folowing income and expenses from his business in 2019.
Gross income
$325,000
Business expenses
201,000
Records related to Sarah's employment provide the following information.
Salary
$145,000
Uneimbursed travel expenses (including $200 of meals)
1,600
Other pertinent information for the tax year includes the following.
Proceeds from sale of stock acquired on July 15, 2019 (cost of $12,000),
and sold on August 1, 2019
Proceeds from sale of stock acquired on September 18, 2018
(cost of $5,000), and sold on October 5, 2019
$ 9,800
3,800
Wages paid to full-time domestic worker for housekeeping and
child supervision
10,000
Interest income received
7,000
Total itemized deductions (not including any potential deductions above)
27,900
Federal income tax withheld
31,850
Estimated payments of Federal income tax
20,000
Compute the net tax payable or refund due for Tim and Sarah Lawrence for 2019.
Transcribed Image Text:45. Tim and Sarah Lawrence are married and file a joint retum. Tim's Social Security number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-15-6788, and Debra's Social Security number is 123-45-6787. Tim is a self-employed businessperson (sole proprietor of an unincorporated business), and Sarah is a corporate executive. Tim has the folowing income and expenses from his business in 2019. Gross income $325,000 Business expenses 201,000 Records related to Sarah's employment provide the following information. Salary $145,000 Uneimbursed travel expenses (including $200 of meals) 1,600 Other pertinent information for the tax year includes the following. Proceeds from sale of stock acquired on July 15, 2019 (cost of $12,000), and sold on August 1, 2019 Proceeds from sale of stock acquired on September 18, 2018 (cost of $5,000), and sold on October 5, 2019 $ 9,800 3,800 Wages paid to full-time domestic worker for housekeeping and child supervision 10,000 Interest income received 7,000 Total itemized deductions (not including any potential deductions above) 27,900 Federal income tax withheld 31,850 Estimated payments of Federal income tax 20,000 Compute the net tax payable or refund due for Tim and Sarah Lawrence for 2019.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Money Management and Achieving Financial Goals
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education