Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2021 Christmas season and get married aroundthe end of the year. In 2021, Raphael expects to earn $45,050 and Martina expects to earn $15,100. Their employers have deductedthe appropriate amount of withholding from their paychecks throughout the year. Neither Raphael nor Martina has any itemizeddeductions. They are trying to decide whether they should get married on December 31, 2021, or on January 1, 2022. What do yourecommend? Use the appropriate Tax Tables.If Raphael and Martina get married in 2021If Raphael and Martina get married in 2022ACollectivetax liabilityin 2021$$Recommendation:Thus, for tax purposes, it makes more sense for Raphael andMartina to get married in 20213,8113,962

Each and every citizen who has earned income had to pay the required taxes during the period and had…

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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In 2021, Laureen is currently single. She paid $2,740 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,740 each for a total of $5,480). Sheri and Meri qualify as Laureen's dependents. Laureen also paid $12,440 for her son Ryan's (also Laureen's dependent) tuition and related expenses to attend graduate school. Finally, Laureen paid $1,420 for herself to attend seminars at a community college to help her improve her job skills. Laureen's AGI is $45,000 What is the maximum amount of education credits Laureen can claim for these expenditures? (Leave no answer blank. Enter zero if applicable.) Description Credits American opportunity tax credit Lifetime learning credit
In June 2023, Enrique and Denisse Espinosa traveled to Denver to attend a three-day conference sponsored by the American Society of Implant Dentistry. Denisse, a self-employed practicing oral surgeon, participated in scheduled technical sessions dealing with the latest developments in surgical procedures. On two days, Enrique attended group meetings where various aspects of family tax planning were discussed. On the other day, he went sightseeing. Enrique does not work for his wife, but he prepares their tax returns and handles the family investments. Expenses incurred in connection with the conference are summarized below. Airfare (two tickets) $2,200 Lodging (single and double occupancy are the same rate-$295 each day) 885 750 500 305 Meals at local restaurants ($250 x 3 days)* Conference registration fee (includes $120 for Family Tax Planning sessions) Car rental *Split equally between Enrique and Denisse Espinosa. If an amount is zero, enter "0". If required, round your interim…
A rented his apartment to B for $5,000 per month in January 2015. However, they both agreed to execute the agreement for $10,000 per month, because B’s employers provided him with a housing allowance of $10,000 per month, as stated in his terms and condition of his employment. At the end of every month, B will receive $10,000 from his employers for housing, but will pocket $5,000 for himself and pay A the other $5,000 per month as rent. They both enjoyed a harmonious relationship for 2 years. However, in 2017 because of a gambling problem, B had cash flow issues and failed to pay his rent for 4 months. He avoided A at all times and refused to accept A’s phone calls in respect to the payment of the outstanding rent. A is now seeking to enforce the payment of rent by B and is claiming $40,000 in outstanding rent for the last 4 months. Advise A on whether or not he can bring an action against B, bearing in mind what they had agreed upon initially.
Yukari steals $100,000 from her employer through a series of clever transactions during calendar year 2019. Hoping that she will not be discovered, she does not report this amount on her 2019 income tax return when she files it, although she does report her annual salary of $250,000. Should Yukari have reported the $100,000 in income, she would have owed an additional $33,000 in taxes. Two years later, the scheme is uncovered by the shrewd analysis of a new employee. What is the penalty for the omission of the $100,000 of income? $24,750 $30,000 $75,000 $16,500 I DON'T KNOW YET
6
Required: Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2020 Christmas season and get maried around the end of the year Raphael expects to eam $45,000 and Martina expects to eam $15,000 Their employers have deducted the appropriate amount of withholding from their paychecks throughout the year Neither Raphael nor Martina has any itemized deductions They are trying to decide whether they should get married on December 312020or on January 12021 What do you recommend ? Use the appropriate Tax Tables
Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $14,750 in 2020 for adoption-related expenses. The adoption was finalized in early 2021. Marsha received $3,050 of employer-provided adoption benefits. For part (a), assume that any adoption credit is not limited by modified AGI or by the amount of tax liability. Required: What amount of adoption credit, if any, can Niles and Marsha take in 2021? Using the information in part (a), assume that their modified AGI was $224,000 in 2021. What amount of adoption credit is allowed in 2021? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
In May 2021, Whitney filed for divorce from her husband, Michael. Although they lived apart for the last six months of the year, their divorce is not yet finalized and they are still legally married. Whitney does not wish to file a joint 2021 return, and she has no qualifying child or qualifying relative. What filing status should Whitney use?
Arnold and Barbara Cane were divorced in June 2018. Pursuant to the divorce decree, Arnold is obliged to perform as follows: Transfer title of their personal home to Barbara. They purchased the house in 2010 and their basis today is $400,000. The fair market value of the house is $500,000. The house is subject to a 25-year, $250,000 mortgage. Arnold is to continue making payments on the house until it is fully paid off. In 2020, Arnold made payments totaling $18,000. Arnold is to make $3,000 per month payments to Barbara. Of this amount one-half is for child support. The divorce decree further states that alimony is to cease upon the death of the wife. In 2020, he made six payments. How do the transactions in the divorce agreement affect Arnold’s and Barbara’s taxable income?
Han Solo is divorced during 2020. Their son lives with Han’s former spouse, Princess Leia. Han lives alone, and Princess Leia supports their son. During 2020, Wolverine is married to Storm, and they have 2 children (i.e., dependents). Wolverine and Storm have a fight in March; Wolverine leaves and never returns. Storm has no idea where Wolverine is. Storm supports the two children. For 2020, what is the filing status for Han Solo and Storm? Han Solo: Single / Storm: Married filing separately Han Solo: Head of Household / Storm: Married filing separately Han Solo: Head of Household / Storm: Head of Household Han Solo: Married filing separately / Storm: Single Han Solo: Single / Storm: Head of Household
Alison and her husband, Tyrone, were married at the beginning of 2021. They separated on July 5, 2021, and Tyrone moved out of the house at that time. Their son, Cam (9), lived with Alison all year. Alison paid more than half of the total cost of keeping up the home in 2021. Alison and Tyrone's divorce was finalized on January 3, 2022. Alison does not wish to file a joint return with Tyrone. What is Alison's most advantageous 2021 filing status and standard deduction? Qualifying widow(er); $25,100. Head of household; $18,800. Married filing separately; $12,550. Single; $12,550.
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 $750 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 $8,000 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 7.9%. 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 $750 in annual membership dues? (Note: Round your answer up to the…

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