Andrew, who is single, retired from his job this year. He received a salary of $21,000 for the portion of the year that he worked, tax-exempt interest of $2,400, and dividends from domestic corAssume an exclusion ratio of 40% for the pension. Andrew owns a duplex that he rents to others. He received rent of $17,000 and incurred $21,000 of expenses related to the duplex. He conRequirementCompute Andrew's adjusted gross incomeSalaryDividend incomePension income (taxable portion)Social security income (taxable portion)Rental incomeGross incomeMinus: Deductions for Adjusted gross incomeRental expensesAdjusted gross income210003,9002,3407501700044990(21000)23,990

The term "adjusted gross income" refers to gross income less certain deductions provided by the…

Answered: Andrew, who is single, retired from his…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jeremy (unmarried) earned $100, 800 in salary and $6,800 in interest income during the year. Jeremy's employer withheld $10,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremy qualifies to file as head of household and has $23,800 in itemized deductions, including $ 2,000 of charitable contributions to his church. (Use the tax rate schedules.) Required: Determine Jeremy's tax refund or taxes due. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $7,550. What is Jeremy's tax refund or tax due including the tax on the capital gain? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Assume the original facts except that Jeremy has only $4,500 in itemized deductions. Assume the charitable contribution deduction for non- itemizers applies to 2022. What is Jeremy's tax refund or tax due?
Andrew, who is single, retired from his job this year. He received a salary of $26,000 for the portion of the year that he worked, tax-exempt interest of $2,600, and dividends from domestic corporations of $3,700. On October 1, he began receiving monthly pension payments of $700 and Social Security payments of $500. Assume an exclusion ratio of 40% for the pension. Andrew owns a duplex that he rents to others. He received rent of $11,000 and incurred $16,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job. Requirement Compute Andrew's adjusted gross income. Salary Dividend income 26,000 3,700 Rental income 11,000 Social security income (taxable portion) ? Pension income (taxable portion) Gross income Minus: Deductions for Adjusted gross income Rental income Adjusted gross income -16,000
Betsy is single and attended university full-time for 4 months in 2021. Her tuition for the year was $2,100 and her campus living expenses were $5,000 she also paid $1,300 for books. Besty’s income for the year was a scholarship from the university for $2,000 and $16,500 from part time job. from her emplacement income, $260.70 was withheld for EI and $708.50 for CPP ($65.00 in line 2215, $643.50 in line 30800) the only other non-refundable credit she can claim is the canada employment amount. How much of the tuision fees muct Betsy claim on her own return to reduce her federal tax to zero , and how much can she trasfier to her grandfather? A) Line 32300-$2,100.00- no transfer B) Line 32300-$1,965.80- transfer -$134.20 C) Line 32300- $0.00- transfer -$2,100.00 D) Line 32300- $465.80- transfer - $1,634.20
Grady received $8,760 of Social Security benefits this year. Grady also reported salary and interest income this year. What amount of the benefits must Grady include in his gross income under the following five independent situations? Grady files married separate and reports salary of $23,540 and interest income of $740
Layla has $200,000 of QBI from her neighborhood clothing store (a sole proprietorship). Her proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Layla's spouse earned $50,000 of wages as an employee, and the couple earned $20,000 of interest income during the year. They will be filing jointly and take the standard deduction of $25,100.What is their QBI deduction for 2021? a.$-0-. b.$54,000. c.$40,000. d.$48,980.
Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $10,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremy qualifies to file as head of household and has $23,000 in itemized deductions, including $2,000 of charitable contributions to his church. (Use the tax rate schedules.) b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What is Jeremy’s tax refund or tax due including the tax on the capital gain?
Bruce and Amanda are married during the tax year. Bruce is a botanist at Green Corporation. Bruce earns a salary of $56,000 per year. Green Corporation has an accountable reimbursement plan. During the year, Bruce has $5,000 of employee expenses. Green Corporation reimburses Bruce for only $4,000 of expenses.Bruce decides to put $5,500 into a Traditional IRA. Amanda owns a financial consulting firm as a sole proprietor (it qualifies as a full trade or business). Amanda generates $80,000 of revenues during the year. She has the following business payments associated with her firm:● Utilities: $2,000● Office Rent: $14,000● Self-Employment Tax: $5,000● Salary for her secretary: $20,000● Fines/Penalties: $8,000● Payroll Taxes (Employer Portion): $1,000● Business Meals: $2,000● Bribe to police officer to forgive parking violation $1,500Due to the income and expenses above, Amanda has $39,500 of Qualified Business Income. Also, during the year a tornado damaged the roof of their personal…
Aiden is married and has salary income of $80,000 and total itemized deductions is $30,000. During the year, he sold two investments resulting in a $5,000 long-term capital gain and a $15,000 short-term capital loss. He calculated his AGI to be $70,000 (80,000 -10,000) and his taxable income to be $40,000 (70,000-30,000). Based on the tax formula and the net capital loss rules, comment on whether or not the adjusted gross income and taxable income are correct. Explain and provide support for your position.
Thomas, a calendar year cash basis taxpayer, has the following transactions: Salary from job $50,000 Alimony paid to ex-wife (divorce after 2018) 9,000 Medical expenses 4,500 Charitable contributions 2,000 Based on this information, Thomas has: AGI of $34,500. AGI of $41,000. AGI of $50,000. Medical expense deduction of $3,075. None of the above.
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2023. During that time, he earned $90,000 of self-employment income. On April 1, 2023, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $198,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Self-employment/FICA tax
Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: Note: Leave no answer blank. Enter zero if applicable. a. Clem is self-employed, and this year he incurred $830 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Clem paid health insurance premiums of $5,490 to provide coverage for himself and Wanda (not through an exchange).What is the deductible amount for AGI? b. Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,270 in utilities and $985 in depreciation.What is the deductible amount for AGI c. Clem paid self-employment tax of $17,600 (the employer portion is $8,800), and Wanda had $3,500 of Social Security taxes withheld from her pay.What is the…
Chad and Jason Roberts paid $8,500 during the year for childcare for their three children, aged 2, 6 and 11. Chad's annual salary was $12,000 and Jason's annual salary was $42,000. Chad can deduct the $8,500 paid from his income. a) True b) False The entire amount of retiring allowance received must be included in income, even if some part of the allowance was transferred to an RRSP. a) True. b) False The amount earned in a Tax Free Savings Account (TFSA) is not subject to taxation; however, the withdrawals from a TFSA are taxed in the hands of the recipient. a) True b) False int) MacBook Pro

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