Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2018 Christmas seasonand get married around the end of the year. In 2018, Raphael expects to earn $58,600 and Martina expects toearn $23,500. Their employers have deducted the appropriate amount of withholding from their paychecksthroughout the year. Neither Raphael nor Martina has any itemized deductions. They are trying to decidewhether they should get married on December 31, 2018, or on January 1, 2019. What do you recommend?

Answer:- Income Tax:- It is the type of tax which levied on the salaries, wages, investments and…

Answered: Raphael and Martina are engaged and are…

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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Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.
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Shonda and Andre adopted a child with special needs in a domestic adoption. They had $10,000 in adoption expenses in 2021, and the adoption was finalized on December 15, 2021. How much can they claim in 2021
This year Diane intends to file a married-joint return. Diane received $179,500 of salary and paid $7,050 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $7,400 and $29,300 of alimony to her ex-spouse, Jack, who she divorced in 2012.
Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends. What is Phil and Susan's AGI? Phil and Susan have a net short-term capital gain of $_______ (Side note: 3000 is wrong) and a net long-term capital loss of $2500.
Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are gainfully employed and earn salaries in 2021 as follows: $130,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, Jim and Mary Jean pay Eleanor (Jim’s mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary Jean. Jim and Mary Jean file a joint Federal income tax return. Compute their credit for child and dependent care expenses.
John and Jill are a de facto couple who purchase a family home and a rental property in January 2018. They separate in August that year, with Jill getting the family home and John getting the rental property. John initially decides to keep the rental property as an investment, but later changes his mind when he finds it hard to pay the weekly outgoings on his own. John sells the rental property in January 2019. Is the sale subject to tax?
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $500 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $4,500 and never have to pay annual membership dues. Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it's a great deal. Suppose that the appropriate annual interest rate is 8.5%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $500 in annual membership dues? (Note: Round your answer up to the…
Harry and Carrie Franklin are married and choose to file Married Filing Jointly on their 2020 tax return. Harry and Carrie have one son Billy and a newborn baby Cristina born in 2020. Carrie was a kindergarten teacher at a private school through May and decided not to return after the birth of her child. Carrie worked a total of 800 hours in 2020 (January - May). She spent $375 on unreimbursed classroom expenses while she was employed. In order to work, the Franklins paid child care expenses of $1,500 through May for Billy. They also paid $750 in child care expenses for Cristina while Carrie volunteered in Billy’s class in November. How much are Harry and Carrie able to deduct for educator expenses in any?
Alicia and Rafel are in the process of negotiating a divorce agreement to be finalized in 2021. They both worked during the marriage and contributed an equal amount to the marital assets. They own a home with a fair market value of $400,000 (cost of $300,000) that is subject to a mortgage of $250,000. They have lived in the home for 12 years. They also have investment assets with a cost of $160,000 and a fair market value of $410,000. As a result, the net worth of the couple is $560,000 ($400,000 − $250,000 + $410,000). The holding period for the investments is longer than one year. Alicia would like to continue to live in the house. Therefore, she has proposed that she receive the residence subject to the mortgage, a net value of $150,000. In addition, she would receive $17,600 each year for the next 10 years, which has a present value (at 6% interest) of $130,000. Rafel would receive the investment assets. If Rafel accepts this plan, he must sell one-half of the investments so that…
tim is living with his spouse in California when he finds out that his wife is having an affair. Tim packs his bags and leaves the state to move to Indiana, intending on filing separately. Tim and his spouse cohabitated until June. He earned $50,000 during the year, $30,000 of which was in California. She earned $60,000 during the year. How much wage income does Tim have on his California return and from whom? (Remember, the return is being filed separately) He has $50,000 in state wages from his pay only, since he's no longer in a community property state. He has $45,000 in state wages, with $15,000 from half of his state-sourced pay and $30,000 from her half of pay. He has $55,000 in state wages, with $25,000 from half of his total pay and $30,000 from her half of pay. He has $30,000 in state wages from his state-sourced pay.
Kiara (31) is married. However, she and her two children, Xavier (3) and Shandra (5), moved back in with her parents in 2019, after she separated from her husband. She will not be filing a joint return with her husband. They are all U.S. citizens and have valid social security numbers. Kiara's divorce had not been finalized by the end of 2020, but her husband did not live with her during the year. The children stayed with him 150 nights and the rest of the nights with Kiara. He did not pay any of her household expenses. Since the separation, Kiara and her children have lived in the finished basement apartment that her parents used to rent to local college students. Kiara pays more than half the cost of maintaining the apartment, and neither of the children provided any of their own support. Kiara’s wages and AGI were $43,250; Xavier’s gross income was $0; Shandra’s was $0. Kiara had no other income including foreign income. Kiara will not be releasing any dependent exemptions she may…

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