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Problem 6-50 (LO 6-2) (Algo) Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and 2022), Trevor expects to report salary of $88,000, contribute $8,400 to charity, and pay $3,000 in state income taxes. Required: a. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the 2021 amounts for the standard deduction. c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022) using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,400 and state tax payments of $3,000 in each year. d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction. Complete this question by entering your answers in the tabs below. Rectangular Snip

Problem 6-50 (LO 6-2) (Algo) Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and 2022), Trevor expects to report salary of $88,000, contribute $8,400 to charity, and pay $3,000 in state income taxes. Required: a. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the 2021 amounts for the standard deduction. c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022) using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,400 and state tax payments of $3,000 in each year. d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction. Complete this question by entering your answers in the tabs below. Rectangular Snip

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 6-50 (LO 6-2) (Algo) Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and 2022), Trevor expects to report salary of $88,000, contribute $8,400 to charity, and pay $3,000 in state income taxes. Required: a. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the 2021 amounts for the standard deduction. c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022) using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,400 and state tax payments of $3,000 in each year. d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction. Complete this question by entering your answers in the tabs below. Req A Req B Req C Salary Itemized deductions Standard deduction Reg D Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. (Amounts to be deducted should be indicated with a minus sign. Leave no field blank. Enter zero if applicable.) Greater of standard deduction over itemized deductions From AGI charitable contribution deduction Taxable income Total taxable income for the two years $ 2021 Rectangular Snip 0 $ 2022 0
Transcribed Image Text:Problem 6-50 (LO 6-2) (Algo) Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and 2022), Trevor expects to report salary of $88,000, contribute $8,400 to charity, and pay $3,000 in state income taxes. Required: a. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the 2021 amounts for the standard deduction. c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022) using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,400 and state tax payments of $3,000 in each year. d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction. Complete this question by entering your answers in the tabs below. Req A Req B Req C Salary Itemized deductions Standard deduction Reg D Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. (Amounts to be deducted should be indicated with a minus sign. Leave no field blank. Enter zero if applicable.) Greater of standard deduction over itemized deductions From AGI charitable contribution deduction Taxable income Total taxable income for the two years $ 2021 Rectangular Snip 0 $ 2022 0
Req A Req B Salary Itemized deductions Standard deduction Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the for the standard deduction. (Amounts to be deducted should be indicated with a minus sign.) Taxable income Total taxable income for the two years Show Transcribed Text Req A Req B Salary Itemized deductions Standard deduction Req C Reg A Show Transcribed Text Complete this question by entering your answers in the tabs below. Taxable income Total taxable income for the two years Req B Req C Salary Itemized deductions Standard deduction Req D Req C Ć Req D Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022) using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,400 and state tax payments of $3,000 in each year. (Amounts to be deducted should be indicated with a minus sign.) Taxable income Total taxable income for the two years Req D $ $ 2021 Ć $ 2021 0 $ Ć 2021 0 $ 2022 Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction. (Amounts to be deducted should be indicated with a minus sign.) 0 $ 2022 2022 0 0 0 Show less Show less
Transcribed Image Text:Req A Req B Salary Itemized deductions Standard deduction Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the for the standard deduction. (Amounts to be deducted should be indicated with a minus sign.) Taxable income Total taxable income for the two years Show Transcribed Text Req A Req B Salary Itemized deductions Standard deduction Req C Reg A Show Transcribed Text Complete this question by entering your answers in the tabs below. Taxable income Total taxable income for the two years Req B Req C Salary Itemized deductions Standard deduction Req D Req C Ć Req D Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022) using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,400 and state tax payments of $3,000 in each year. (Amounts to be deducted should be indicated with a minus sign.) Taxable income Total taxable income for the two years Req D $ $ 2021 Ć $ 2021 0 $ Ć 2021 0 $ 2022 Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,400 and $16,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction. (Amounts to be deducted should be indicated with a minus sign.) 0 $ 2022 2022 0 0 0 Show less Show less
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