Ralph Henwood was paid a salary of $64,600 during 20-- by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported a net business income of $80,000 on his income tax return for 20--. Compute the following: a. The amount of FICA taxes that was withheld from his earnings during 20-- by Odesto Company. OASDI HI 936.70 ✔ b. Henwood's self-employment taxes on the income deri d from the public accounting business for 20--. OASDI 4,005.20✔ HI 7,762.40 X 2,030.00 X

Ralph Henwood was paid a salary of $64,600 during 20-- by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported a net business income of $80,000 on his income tax return for 20--. Compute the following: a. The amount of FICA taxes that was withheld from his earnings during 20-- by Odesto Company. OASDI HI 936.70 ✔ b. Henwood's self-employment taxes on the income deri d from the public accounting business for 20--. OASDI 4,005.20✔ HI 7,762.40 X 2,030.00 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: You are provided with the following amounts for Janet Mattera for the current year: • Net…

A: Taxable income is the net income earned by an individual on which the tax is payable. It is…

Q: What is Johnstone's accumulated adjustments account at the end of year 2, and what amount of…

A: The cumulative amount of the S corporation's taxable revenue and separately declared items, less any…

Q: Ralph Henwood was paid a salary of $82,400 during 20-- by Odesto Company. In addition, during the…

A: The "Federal Insurance Contributions Act" is abbreviated as FICA. The FICA tax deducts money from…

Q: Ralph Henwood was paid a salary of $83,600 during 20-- by Odesto Company. In addition, during the…

A: a.

Q: FruAgro Company has average annual gross receipts of $52 million annually. This year. FruAgro earned…

A: The business interest deduction is a tax provision that allows businesses to deduct the interest…

Q: Mike Inc. is switching from a cash to an accrual method for tax purposes effective 1/1/X2. Mike…

A: Taxable income: It can be defined as an income that is used or considered while calculating the tax…

Q: Gross receipts Cost of sales Gross profit Capital gain Capital loss Total income year taxpayer)…

A: Any person or business that owes taxes to the federal, state, or local governments is referred to as…

Q: Required: 1) Assume that Business is a cash method taxpayer. Compute its taxable income. 2) Assume…

A: Taxable income is the portion of income subject to taxation after allowable deductions. It includes…

Q: Do not use Ai

A: Start with Reported Net Income: Slumar reported a net income of $7,289,200 before tax. Bad Debts…

Q: please answer this thank you

A: In this question, we have to find out the taxable income of Kagura under different circumstances.

Q: Suppose that in addition to $18.05 million of taxable income, Texas Taco, Inc., received $2,300,000…

A: a. Total taxable income = income + dividend = 18,05,00,00 + 7,30,000 = 18,78,00,00 Note…

Q: Required: a. Compute Luong's federal taxable income and regular tax liability. b. Prepare a Schedule…

A: Income Tax - Taxes are levied by the state, federal, and Local governments on the gross income of…

Q: Based on the above, what is the amount of Braddock's accumulated earnings and profits as of January…

A: Accumulated earnings and profit: > Accumulated earnings and profits are the company's net profit…

Q: Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in…

A: Information given in the given case are as follows: Sales Revenue for year 2 of S Corporation is…

Q: lph Henwood was paid a salary of $83,800 during 20-- by Odesto Company. In addition, during the year…

A: FICA Taxes -A federal law known as the Federal Insurance Contributions Act (FICA) mandates that…

Q: Lone Psychic Experience is a sole proprietorship established this year. Alice Lone established the…

A: In a sole proprietorship, the equity account represents the owner's equity . The equity account is…

Q: An accountant for a corporation forgot to pay the firm's income tax of $725,769.12 on time. The…

A: Income Tax :— It is tax levied by goverment directly on their citizens. Penalty on income tax :—…

Q: An accountant for a corporation forgot to pay the firm's income tax of $725,604.42 on time. The…

A: Tax late payment penalties are fines levied by tax authorities on people or businesses who fail to…

Q: Suppose that in addition to $17.95 million of taxable income, Texas Taco, Inc., received $2,100,000…

A: The average tax rate represents the overall tax rate applicable to the taxable income. While the…

Q: Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in…

A: C Corporation: A C-organization is a made up legitimate substance that is made to show a business to…

Question

Ralph Henwood was paid a salary of $64,600 during 20-- by Odesto Company. In addition, during
the year Henwood started his own business as a public accountant and reported a net business
income of $80,000 on his income tax return for 20--. Compute the following:
a. The amount of FICA taxes that was withheld from his earnings during 20-- by Odesto
Company.
OASDI
HI
OASDI
4,005.20
b. Henwood's self-employment taxes on the income derid from the public accounting business
for 20--.
HI
936.70
7,762.40 X
2,030.00 X

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to payroll taxes

VIEW

Step 2: Calculation of OASDI and Medicare under Self-employment

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Federal Insurance Contributions Act (FICA)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Last year Sherlock had an annual earned income of S58,475. He also had passive income of $1,255, and capital gains of $2,350. What was Sherlock's total gross income for the year? a. $58.475 b. 559.730 c. 560 985 d.562.080
The profit and loss statement of Treadwell Ltd., an S corporation, shows $265,000 book income. Treadwell is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. (attached image) a. Compute Treadwell's nonseparately stated income or loss for the tax year. b. What would be the share of this year's nonseparately stated income or loss items for Leo Lion, one of the Treadwell shareholders? c. What is Leo Lion's share of tax-exempt interest income, if any?
Hank started a new business, Hank's Donut World (HW for short), in June of last year. He has requested your advice on the following specific tax matters associated with HW's first year of operations. Hank has estimated HW's income for the first year as follows: Revenue: Donut sales Catering revenues Expenditures: Donut supplies Catering expense Salaries to shop employees Rent expense Accident insurance premiums Other business expenditures Net Income $ 290,000 96,390 $394,398 $153,220 39,640 64,000 49,940 8,952 9,610 -325,362 $ 69,028 HW operates as a sole proprietorship, and Hank reports on a calendar year. Hank uses the cash method of accounting and plans to do the same with HW (HW has no inventory of donuts because unsold donuts are not salable). HW does not purchase donut supplies on credit, nor does it generally make sales on credit. Hank has provided the following details for specific first-year transactions. 1. A small minority of HW clients complained about the catering service.…
An exempt organization, reports unrelated business income of $290,000 and unrelated business expenses of $45,000. In addition, the organization has positive adjustments of $88,000. Assume a 21% corporate income tax rate. Calculate the amount of unrelated business income tax. (Is 1,000 standard deduction applicable?)
Darren ltd. has a December 31 year end. For the current year, the company reported net income before tax for accounting purposes, determined under generally accepted accounting principles, of $682,000. Darren has an investment in Lake Inc. that is accounted for using the equity method. Current-period equity income is $65,000, and dividends received on this investment in the year were $43,500. In the current year, Darren also received dividends from taxable Canadian corporations of $3,700 on portfolio investments and foreign dividends of $4,600. Darren's capital cost allowance claim for the year is equal to amortization expense reported in the income statement. For the current year, what amount will Darren report as net income for tax purposes and taxable income?
2
i need the answer quickly
Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company’s tax accounting balance sheet. The relevant information is summarized as follows: Note: Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign. FMV Adjusted Tax Basis Appreciation Cash $ 10,000 $ 10,000 Receivables 15,000 15,000 Building 100,000 50,000 50,000 Land 225,000 75,000 150,000 Total $ 350,000 $ 150,000 $ 200,000 Payables $ 18,000 $ 18,000 Mortgage* 112,000 112,000 Total $ 130,000 $ 130,000 * The mortgage is attached to the building and land. Ernesto was asking for $400,000 for the company. His tax basis in the BLI stock was $100,000. Included in the sales price was an unrecognized customer list valued at $100,000. The unallocated portion of the purchase price…
Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2. Johnstone's earnings and profits at the end of year 1 were $11,560. Marcus is Johnstone's sole shareholder, and he has a stock basis of $46,000 at the end of year 1. Johnstone Corporation Income Statement December 31, Year 2 Year 2 (S Corporation) $ 174,000 ( 41,000) ( 66,000) ( 56,500) (10,000) ( 4,600) 12,540 $ 8,440 Sales r evenue Cost of goods sold Salary to owners Employee wages Depreciation expense Miscellaneous expenses Interest income Overall net income What is Johnstone's accumulated adjustments account at the end of year 2, and what amount of dividend income does Marcus recognize on the year 2 distribution in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.) b. Johnstone distributed $11,200 to Marcus in year 2. Accumulated adjustments account $ Dividend income
11. The Dot Corporation has changed its year-end from a calendar year-end to August 31. The income for its short period from January 1 to August 31 is $54,000. The tax for this short period is: a.$2,040 b.$8,667 c.$11,340 d.$6,250