Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition 1,364 6,160 3,580 Lizzie's room and board at college Cash contributions to the Red Cross 13,000 620 Comprehensive Problem 7-46 Part-a (Algo) a. Determine Joe and Jessie's AGI and taxable income for the year. Note: Round your Intermediate calculations to the nearest whole dollar amount. Answer is complete but not entirely correct. Joe and Jessie's AGI $ 161,360 Joe and Jessie's Taxable income S 126,399 Required Information Comprehensive Problem 7-46 (LO 7-1, LO 7-2, LO 7-3) (Algo) [The following Information applies to the questions displayed below.] Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm, while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file married filing Jointly. Assume that the employer portion of the self-employment tax on Jessie's Income is $682. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Postage for mailing crafts Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cash contributions to the Red Cross $ 156,000 18,590 1,840 754 958 $ 13,700 6,780 7,558 6,580 348 1,340 27,900 2,680 1,880 2,780 6,350 164 2,420 1,364 6,160 3,580 13,000 620

Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition 1,364 6,160 3,580 Lizzie's room and board at college Cash contributions to the Red Cross 13,000 620 Comprehensive Problem 7-46 Part-a (Algo) a. Determine Joe and Jessie's AGI and taxable income for the year. Note: Round your Intermediate calculations to the nearest whole dollar amount. Answer is complete but not entirely correct. Joe and Jessie's AGI $ 161,360 Joe and Jessie's Taxable income S 126,399 Required Information Comprehensive Problem 7-46 (LO 7-1, LO 7-2, LO 7-3) (Algo) [The following Information applies to the questions displayed below.] Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm, while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file married filing Jointly. Assume that the employer portion of the self-employment tax on Jessie's Income is $682. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Postage for mailing crafts Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cash contributions to the Red Cross $ 156,000 18,590 1,840 754 958 $ 13,700 6,780 7,558 6,580 348 1,340 27,900 2,680 1,880 2,780 6,350 164 2,420 1,364 6,160 3,580 13,000 620

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 76TPC

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