In 2020, Jack and Eri are married. Jack earns $150,000 from his job as a finance executive. Eri earns $25,000 per year as a part-time florist. They have two children, Harry and Gon, ages 2 and 5. Jack's great aunt Jean gave him a check for $17,000 during the year because he is her favorite nephew. Also, Jack's job reimbursed him $5,000 for childcare for his two sons. Eri owns a 20% interest in Flowers to Go (a partnership). The partnership earned $75,000 in operating income during the year, it also paid a cash distribution of $15,000 to Eri during the year. Jack and Eri have a joint checking account that earned interest of $165 for the year. Jack also own City of Mexico bonds which paid interest of $1,000. They also have the following expenses during the year: · Medical Expenses: $22,000 · State & Local Taxes: $11,500 · Federal Income Tax Payments: $10,000 · Cash Charitable Contributions: $3,000 The standard deduction amounts for 2021 are listed below: · Single: $12,550 · Head of Household: $18,800 · Married Filing Jointly: $25,100 Calculate the appropriate amounts for Jack and Eri. Please show your work for maximum points. Gross Income __________________________ Adjusted Gross Income _____________________ Taxable Income
In 2020, Jack and Eri are married. Jack earns $150,000 from his job as a finance executive. Eri earns $25,000 per year as a part-time florist. They have two children, Harry and Gon, ages 2 and 5. Jack's great aunt Jean gave him a check for $17,000 during the year because he is her favorite nephew. Also, Jack's job reimbursed him $5,000 for childcare for his two sons. Eri owns a 20% interest in Flowers to Go (a partnership). The partnership earned $75,000 in operating income during the year, it also paid a cash distribution of $15,000 to Eri during the year. Jack and Eri have a joint checking account that earned interest of $165 for the year. Jack also own City of Mexico bonds which paid interest of $1,000. They also have the following expenses during the year: · Medical Expenses: $22,000 · State & Local Taxes: $11,500 · Federal Income Tax Payments: $10,000 · Cash Charitable Contributions: $3,000 The standard deduction amounts for 2021 are listed below: · Single: $12,550 · Head of Household: $18,800 · Married Filing Jointly: $25,100 Calculate the appropriate amounts for Jack and Eri. Please show your work for maximum points. Gross Income __________________________ Adjusted Gross Income _____________________ Taxable Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2020, Jack and Eri are married. Jack earns $150,000 from his job as a finance executive. Eri earns $25,000 per year as a part-time florist. They have two children, Harry and Gon, ages 2 and 5.
Jack's great aunt Jean gave him a check for $17,000 during the year because he is her favorite nephew. Also, Jack's job reimbursed him $5,000 for childcare for his two sons.
Eri owns a 20% interest in Flowers to Go (a partnership). The partnership earned $75,000 in operating income during the year, it also paid a cash distribution of $15,000 to Eri during the year.
Jack and Eri have a joint checking account that earned interest of $165 for the year. Jack also own City of Mexico bonds which paid interest of $1,000.
They also have the following expenses during the year:
· Medical Expenses: $22,000
· State & Local Taxes: $11,500
· Federal Income Tax Payments: $10,000
· Cash Charitable Contributions: $3,000
The standard deduction amounts for 2021 are listed below:
· Single: $12,550
· Head of Household: $18,800
· Married Filing Jointly: $25,100
Calculate the appropriate amounts for Jack and Eri. Please show your work for maximum points.
Gross Income __________________________
Adjusted Gross Income _____________________
Taxable Income
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