Married taxpayers David and Lillian Perdue file jointly and have a daughter, Erin. They live at 9510 Bluebird Canyon Drive, Seattle, WA 99201. The Perdues own their home, which was paid off last year. David works as a salesman for the Canyon Honda car dealer and Lillian works at the same dealer as the manager of the service department. The social security number for David is 412-34-5670; for Lillian, 412-34-5671; and for Erin, 412-34-5672. Their birth dates are as follows: David, 1/18/1971; Lillian, 3/14/1971; and Erin, 11/21/2011. Erin attends school during the day and in the afternoon attends Seattle Day Care (1 Day Street, Seattle WA 99201, EIN 92-6789012). The Perdues paid $2,800 during the year to the school for the after-school care. The Forms W-2 from Canyon Honda contained the following information: Lillian Perdue: Wages (box 1) = $ 72,586.67 Federal W/H (box 2) = $ 7,165.00 Social security wages (box 3) = $ 72,586.67 Social security W/H (box 4) = $ 4,500.37 Medicare wages (box 5) = $ 72,586.67 Medicare W/H (box 6) = $ 1,052.51 David Perdue: Wages (box 1) = $ 62,434.91 Federal W/H (box 2) = $ 6,492.14 Social security wages (box 3) = $ 62,434.91 Social security W/H (box 4) = $ 3,870.96 Medicare wages (box 5) = $ 62,434.91 Medicare W/H (box 6) = $ 905.30 Prepare the Perdues’ federal tax return. Use Forms 1040, 2441, and any additional appropriate schedules they may need for credits. For any missing information, make reasonable assumptions. Use the appropriate Tax Tables or Tax Rate Schedules. Note: List the names of the taxpayers

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Married taxpayers David and Lillian Perdue file jointly and have a daughter, Erin. They live at 9510 Bluebird Canyon Drive, Seattle, WA 99201. The Perdues own their home, which was paid off last year. David works as a salesman for the Canyon Honda car dealer and Lillian works at the same dealer as the manager of the service department. The social security number for David is 412-34-5670; for Lillian, 412-34-5671; and for Erin, 412-34-5672. Their birth dates are as follows: David, 1/18/1971; Lillian, 3/14/1971; and Erin, 11/21/2011.

Erin attends school during the day and in the afternoon attends Seattle Day Care (1 Day Street, Seattle WA 99201, EIN 92-6789012). The Perdues paid $2,800 during the year to the school for the after-school care.

The Forms W-2 from Canyon Honda contained the following information:

Lillian Perdue:

Wages (box 1) = $ 72,586.67
Federal W/H (box 2) = $ 7,165.00
Social security wages (box 3) = $ 72,586.67
Social security W/H (box 4) = $ 4,500.37
Medicare wages (box 5) = $ 72,586.67
Medicare W/H (box 6) = $ 1,052.51

David Perdue:

Wages (box 1) = $ 62,434.91
Federal W/H (box 2) = $ 6,492.14
Social security wages (box 3) = $ 62,434.91
Social security W/H (box 4) = $ 3,870.96
Medicare wages (box 5) = $ 62,434.91
Medicare W/H (box 6) = $ 905.30

Prepare the Perdues’ federal tax return. Use Forms 1040, 2441, and any additional appropriate schedules they may need for credits. For any missing information, make reasonable assumptions. Use the appropriate Tax Tables or Tax Rate Schedules.

Note: List the names of the taxpayers 

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