CALCULATE TAXABLE INCOME 2 CALCULATE TAX LIABILITY

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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John and Martha Holloway are married filing jointly. They are 35 and 31 years old, respectively. Their address is 10010 Dove Street, Atlanta, GA 30294. Additional information about Mr. and Mrs. Holloway is as follows:

Social security number: John: 412-34-5670 Date of birth: 3/4/1986 W-2 for John shows these amounts: Wages (box 1) = $ 22,000.00 Federal W/H (box 2) = $ 1,500.00 Social security wages (box 3) = $ 22,000.00 Social security W/H (box 4) = $ 1,364.00 Medicare wages (box 5) = $ 22,000.00 Medicare W/H (box 6) = $ 319.00

Social security number: Martha: 412-34-5671 Date of birth: 8/20/1990 W-2 for Martha shows these amounts: Wages (box 1) = $ 35,500.00 Federal W/H (box 2) = $ 3,100.00 Social security wages (box 3) = $ 35,500.00 Social security W/H (box 4) = $ 2,201.00 Medicare wages (box 5) = $ 35,500.00 Medicare W/H (box 6) = $ 514.75

Form 1099-DIV for Martha shows this amount: Box 1a and box 1b = $345.00 from MAR Brokerage.

Form 1099-INT for Martha shows these amounts: Box 1 = $450.00 from ABC Bank. Box 4 = $35.00.

1 CALCULATE TAXABLE INCOME

2 CALCULATE TAX LIABILITY

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