Required information[The following information applies to the questions displayed below.]Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2023, Sandyworked as a computer technician at a local university earning a salary of $153,300, and John worked part time as areceptionist for a law firm, earning a salary of $30,300. Sandy also does some Web design work on the side and reportedrevenues of $5,300 and associated expenses of $1,400. The Fergusons received $1,060 in qualified dividends and a$265 refund of their state income taxes. The Fergusons always itemize their deductions, get the full benefit of deductingthe entire amount of state income taxes paid, and their itemized deductions were well over the standard deductionamount last year. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2023 AMT exemption forreference.The Fergusons reported making the following payments during the year:State income taxes of $4,725. Federal tax withholding of $21,000.●Alimony payments to Sandy's former spouse of $10,650 (divorced 12/31/2014).• Child support payments for Sandy's child with her former spouse of $4,230.●$12,330 of real property taxes.John was reimbursed $665 for employee business expenses he incurred. He was required to provide documentationfor the expenses to his employer.$3,600 to Kid Care day care center for Samantha's care while Sandy and John worked.$15,300 interest on their home mortgage ($400,000 acquisition debt).$3,195 interest on a $42,600 home-equity loan. They used the loan to pay for a family vacation and new car.$15,650 cash charitable contributions to qualified charities.• Donation of used furniture to Goodwill. The furniture had a fair market value of $530 and cost $2,650.●●·a. What is the Fergusons' 2023 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?Note: Round your intermediate computations to the nearest whole dollar amount.Tax refund

When the total taxable income is after computing the AGI and deducting all the deductions allowed to…

omputer technician at a local university earning a salary of $153,300, and John w r a law firm, earning a salary of $30,300. Sandy also does some Web design wo 5,300 and associated expenses of $1,400. The Fergusons received $1,060 in qu f their state income taxes. The Fergusons always itemize their deductions, get th unt of state income taxes paid, and their itemized deductions were well over the ar. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates,

omputer technician at a local university earning a salary of $153,300, and John w r a law firm, earning a salary of $30,300. Sandy also does some Web design wo 5,300 and associated expenses of $1,400. The Fergusons received $1,060 in qu f their state income taxes. The Fergusons always itemize their deductions, get th unt of state income taxes paid, and their itemized deductions were well over the ar. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Suppose that Charles holds the land for appreciation. What is the deductible taxes from AGI?
Suppose that Charles holds the land for appreciation and that the vacation was actually a business trip. What is the deductible taxes from AGI?
The following information applies to the questions displayed below.] Haru is a self-employed cash-method, calendar-year taxpayer, who made the following cash payments related to his business this year. Calculate the after-tax cost of each payment assuming Haru has a 37 percent marginal tax rate. a. $500 fine for speeding while traveling to a client meeting. b. $800 of interest on a short-term loan incurred in September and repaid in November. Half of the loan proceeds was used immediately to pay salaries and the other half was invested in municipal bonds until November. c. $600 for office supplies in May of this year. Haru used half of the supplies this year, and he will use the remaining half by February of next year. d. $450 for several pairs of work boots. Haru expects to use the boots about 80 percent of the time in his business and the remainder of the time for hiking. Consider the boots to be a form of clothing.
Roxy operates a dress shop in Arlington, Virginia. Lisa, a Maryland resident, comes in for a measurement and purchases a $2,800 dress. Lisa returns to Virginia a few weeks later to pick up the dress and drive it back to her Maryland residence, where she will use the dress. Assuming that Virginia's sales tax rate is 5 percent and that Maryland's sales tax rate is 6 percent, what is Roxy's sales tax collection obligation? Multiple Choice $0 $140 to Virginia $140 sales tax to Virginia and $28 use tax to Maryland $168 to Maryland
Which one of the following costs is most likely NOT fully deductible? Group of answer choices Jose, a local business owner, pays $30,000 in Self-Employment taxes. Sandra owns a mini golf course. She pays her employer portion of payroll taxes because of her employees, which totals to $12,000. Travis owns a CPA firm and pays his son Joe as an associate. Joe is a CPA and is paid the same salary as the other associates. X-Corp writes off a $12,000 business debt owed by Sam because he has not responded to their numerous requests for payment.
Bill purchased a computer for his business. Bill paid $2,610 for the computer plus $196 for sales tax. He paid $300 for the computer to be set up in his office. When Bill filed his tax return, his tax preparer used Section 179 to expense the cost. What is Bill's adjusted basis in the computer? 1. $3,106 2. $2,806 3. $2,610 4. $0
Meman
Dennis is a self-employed hair stylist who operates a salon in his home. The property taxes and interest allocated to the business amount to $5,000, maintenance and utilities allocated to the business total $2,100, and depreciation allocated to the business use of the home equals $3,100 for the current tax year. a. If Dennis' gross revenue after deducting supplies for his business is $5,900 for the current tax year, calculate his allowable deductions for the home office. b. If Dennis' gross revenue after deducting supplies for his business is $13,800, calculate his allowable deductions for the home office.
Grace is a self-employed sales consultant who spends significant time entertaining potential customers. She keeps all the appropriate records to substantiate her entertainment. She has the following expenses in the current year: Meals where business was conducted $5,000 Greens fees (all business) 500 Tickets to baseball games (all business) 500 Country Club dues (all business use) 6,000 What are the tax-deductible meals and entertainment expenses Grace may claim in the current year?
State whether each of the following payments is a tax. Explain your answers. To incorporate his business, Alex pays the state of Texas a $2,000 incorpora tion fee. The city paves a road and assesses each property owner on the road $4,000 for his or her share of the cost. The city of Asheville charges each residence in the city $10 per month to pick up the trash. Rory pays $450 of income tax to the state of California. Lanny is fined $45 for exceeding the speed limit.
Can you answer each problem
Adam Fleeman, a skilled carpenter, started a home improvement business with Tom Collins, a master plumber. Adam and Tom are concerned about the payroll taxes they will have to pay. Assume they form an S corporation and each earns a salary of $106,000 from the corporation; in addition, they expect their share of business profits to be $88,500 each. How much Social Security tax and Medicare tax (or self-employment tax) will Adam, Tom, and their corporation have to pay on their salary and profits? (Assume Adam and Tom are paying themselves reasonable salaries.) Adam Tom S corporation FICA Tax