Choosing and preparing an individual tax form. Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst in July of that year. He is preparing to file his income tax return for 2018 and has collected the financial information shown below for that calendar year A blank Form 1040 and Schedule 1 may be obtained at Scholarship used to pay tuition Scholarship used to pay room and board Salary Interest income Potential itemized deductions Income taxes withheld $ 5,750 1,850 55,000 185 3,000 2,600 a. Prepare Liam's 2018 tax return, using a $12,000 standard deduction and the tax rates given in Exhibit 3.3. b. Prepare Liam's 2018 tax return using the data in part a along with the following information: IRA contribution Cash dividends received $5,000 150
Choosing and preparing an individual tax form. Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst in July of that year. He is preparing to file his income tax return for 2018 and has collected the financial information shown below for that calendar year A blank Form 1040 and Schedule 1 may be obtained at Scholarship used to pay tuition Scholarship used to pay room and board Salary Interest income Potential itemized deductions Income taxes withheld $ 5,750 1,850 55,000 185 3,000 2,600 a. Prepare Liam's 2018 tax return, using a $12,000 standard deduction and the tax rates given in Exhibit 3.3. b. Prepare Liam's 2018 tax return using the data in part a along with the following information: IRA contribution Cash dividends received $5,000 150
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Choosing and preparing an individual tax form. Liam McKenzie is single, graduated from
college in 2018 and began work as a systems analyst in July of that year. He is preparing to file
his income tax return for 2018 and has collected the financial information shown below for that
calendar year A blank Form 1040 and Schedule 1 may be obtained at
Scholarship used to pay tuition
Scholarship used to pay room and board
Salary
Interest income
Potential itemized deductions
Income taxes withheld
a.
b.
$ 5,750
1,850
55,000
185
3,000
2,600
Prepare Liam's 2018 tax return, using a $12,000 standard deduction and the tax rates
given in Exhibit 3.3.
Prepare Liam's 2018 tax return using the data in part a along with the following information:
IRA contribution
Cash dividends received
$5,000
150
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