I am looking for help with this general accounting question using proper accounting standards. Marcus is retired and receives income from various sources as listed below:Interest from California municipal bonds: $5,200 Social Security benefits:$14,800 Interest from corporate bonds: $3,150 Qualified dividends from U.S.stocks: $2,900 Interest from German government bonds: $1,750Distributions from a Roth IRA (contributions made 10 years ago): $8,500Traditional IRA distributions: $12,400 Disability pension (employer paid allpremiums): $18,300Calculate Marcus's gross income for federal tax purposes.

Step 1: Detailed Explanation of Gross Income (for Federal Tax Purposes)Gross income includes all…

Answered: Marcus is retired and receives income…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 38P

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Jessica retired at age 65. On the date of her retirement, the balance in her traditional IRA was $217,000. Over the years, Jessica had made $21,700 of nondeductible contributions and $68,500 of deductible contributions to the account. If Jessica receives a $67,000 distribution from the IRA on the date of retirement, what amount of the distribution is taxable? Multiple Choice $0. $6,700. $50,250. $60,300. $67,000.
Assuming that Greg files as head of household and has an AGI of $205,000. His investment income includes $300 of taxable interest, $500 of dividends, and $5,000 of rental income. From these figures, determine his Medicare contribution tax.
Linda is an employee of JRH Corporation. Which of the following would be included in Lindas gross income? a. Premiums paid by JRH Corporation for a group term life insurance policy for 50,000 of coverage for Linda. b. 1,000 of tuition paid by JRH Corporation to State University for Lindas masters degree program. c. A 2,000 trip given to Linda by JRH Corporation for meeting sales goals. d. 1,200 paid by JRH Corporation for an annual parking pass for Linda.
Ryan is 39 years old and works as a real estate agent. Ryans marginal tax rate is 24%. Ryan has a traditional (deductible) IRA with a current balance of 80,000. The IRA consists of 60,000 of contributions that Ryan made and deducted on his tax return and 20,000 of account earnings. In the current year, Ryan receives a distribution of the entire 80,000. He contributes 60,000 to a Roth IRA and keeps the remaining 20,000. What is Ryans total income tax and penalty on the transactions? a. 0 income tax, 0 penalty b. 20,000 income tax, 8,000 penalty c. 5,000 income tax, 2,000 penalty d. 19,200 income tax, 2,000 penalty
How much taxable income should each of the following taxpayers report? a. Kimo builds custom surfboards. During the current year, his total revenues are 90,000, and he incurs 30,000 in expenses. Included in the 30,000 is a 10,000 payment to Kimos five-year-old son for services as an assistant. b. Manu gives hula lessons at a local bar. During the current year, she receives 9,000 in salary and 8,000 in tips. In addition, she engages in illegal behavior, for which she receives 10,000.
Leroy and Amanda are married and have three dependent children. During the current year, they have the following income and expenses: Salaries 120,000 Interest income 45,000 Royalty income 27,000 Deductions for AGI 3,000 Deductions from AGI 9,000 a. What is Leroy and Amandas current year taxable income and income tax liability? b. Leroy and Amanda would like to lower their income tax. How much income tax will they save if they validly transfer 5,000 of the interest income to each of their children? Assume that the children have no other income and that they are entitled to a 1,050 standard deduction.

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