Required information[The following information applies to the questions displayed below.]Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents(Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of$104,000 and qualified business income of $11,000 from an investment in a partnership, and they sold their home thisyear. They initially purchased the home three years ago for $205,000 and they sold it for $255,000. The gain on the salequalified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,700 of itemized deductions,and they had $4,000 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit foreach of their children. However, because Candice was 18 years of age at year end, the Jacksons may claim a child taxcredit for other qualifying dependents for Candice. (Use the tax rate schedules.)a. What is the Jacksons taxable income, and what is their tax liability or (refund)?Note: Do not round intermediate calculations.Description(1) Gross income(2) For AGI deductions(3) Adjusted gross income(4) Standard deduction(5) Itemized deductions(6) Greater of standard deduction or itemized deductions(7) Deduction for qualified business income(8) Total deductions from AGI(9) Taxable income(10) Income tax liability(11) Other taxes(12) Total tax(13) Credits(14) PrepaymentsAmount$$$115,0000115,00016,7002,2000< Prev38 of 38 wwwwwwNext

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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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Mr. and Mrs. Scoler sold commercial real estate for $704,000. Their adjusted basis at date of sale was $570,400 ($624,000 cost- $53,600 straight-line accumulated depreciation). They will file their tax return as married filing jointly. Required: Compute the Scolers' income tax and Medicare contribution tax on their recognized gain assuming that this sale was their only property disposition this year and their marginal tax rate on ordinary income is 37 percent. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Answer is not complete. Amount Income tax on recognized gain $ 26,720 x Medicare contribution tax on recognized gain Total $ 26,720
Required information [The following information applies to the questions displayed below.] This year Diane intends to file a married-joint return. Diane received $192,300 of salary and paid $7,800 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $8,600 and $30,700 of alimony to her ex-spouse, Jack, who she divorced in 2013. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. b. Suppose that Diane also reported income of $5,150 from a half share of profits from a partnership. Disregard any potential self- employment taxes on this income. What AGI would Diane report under these circumstances? Diane's AGI
! Required information [The following information applies to the questions displayed below.] This year Diane intends to file a married-joint return. Diane received $190,100 of salary and paid $8,950 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $6,100 and $29,600 of alimony to her ex-spouse, Jack, who she divorced in 2013. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. What is Diane's adjusted gross income? Diane's AGI
Beth and Bob are married entrepreneurs. Beth has a start-up sole proprietorship in which she works long hours. This year the business generated $500,000 of revenues and $800,000 of deductible business expenses. Bob is a partner in a new partnership, also working long hours. His share of the partnership loss for the year is $275,000. Fortunately, they both have trust funds so they are receiving $700,000 of taxable interest income and dividends in 2021. Due to this year's results, Beth and Bob will have an NOL carryover of a. $0. b. $575,000. c. $325,000. d. $51,000.
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Check my work. Bill and Mary filed a joint Federal income tax return this year. Mary owns a 30% interest in MAJIC Partnership, a women’s dress boutique. Mary’s share of the partnership’s net income is $280,000. Her shares of the partnership’s W–2 wages and unadjusted basis of depreciable property are $100,000 and $300,000, respectively. Mary’s share of the partnership income is $280,000 * 20% = $56,000 50% of W-2 wages is $100,000*.5= $50,000 25% of W-2 wages plus 2.5% of adjusted basis of depr prop = $100,000 * 25% +$300,000 * 2.5% =$32,500 The QBI deduction is $50,000 per the limitation phase What is the maximum QBI deduction if MAJIC’s income was from qualified services and Bill and Mary’s total taxable income was $450,000? The QBI deduction can be used for qualified service businesses only if the taxable income before the QBI deduction does not exceed the threshold. Since MAJIC’s…
! Required information [The following information applies to the questions displayed below.] This year Diane intends to file a married-joint return. Diane received $188,300 of salary and paid $8,150 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $9,000 and $28,700 of alimony to her ex-spouse, Jack, who she divorced in 2013. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. What is Diane's adjusted gross income? Answer is complete but not entirely correct. $ 151,450 X Diane's AGI
Required information [The following information applies to the questions displayed below.] This year Diane intends to file a married-joint return. Diane received $189.500 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 2013. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. What is Diane's adjusted gross income? Diane's AGI $ 158,966
Alicia sold her personal residence to Rick for $300,000. Before the sale, Alicia paid the real estate tax of $4,380 for the calendar year. For income tax purposes, the deduction is apportioned as follows; $2,160 for Alicia and $2,220 for Rick. What is Ricks basis in the residence?
Taylor and Tanner formed a partnership. Taylor contributed $50,000 in cash. Tanner contributed land and buildings he purchased for $50,000 some time ago. His tax basis in the property is now $30,000, although it was recently appraised for $70,000. There is a $15,000 mortgage attached to the building that the partnership will assume. What is the amount of Tanner’s capital account after his contribution? a. $50,000 b. $30,000 c. $35,000 d. $55,000
Randy established a trust, reserving in himself the power to terminate the trust if he is not satisfied with its operation. After two years, the power to terminate the trust expires. Randy transferred commercial real estate into the trust and specified that the income be payable annually for the benefit of his adult daughter, Michelle. Randy died one year after creation of the trust instrument. One estate tax implication for Randy of this trust is that the trust property is A) included in his estate because a family member is receiving a benefit from the trust. B) not included in his estate because a transfer for the benefit of a minor is exempt from tax. C) included in Randy's estate because he still had the power to terminate the trust at his death. D) not included in his estate because the power to terminate the trust eventually expires.
In October 2023, Jackie, a single taxpayer, sold IBM stock for $12,000, which she purchased four years ago for $4,000. She also sold GM stock for $14,000, which cost $17,500 three years ago, and she had a short-term capital loss of $1,800 on the sale of land. The tax rates on long-term capital gains are as follows: Income Level Long-Term Capital Gains Rates Married filing jointly $0–$89,250 0% $89,251–$553,850 15% > $553,850 20% Single $0–$44,625 0% $44,626–$492,300 15% > $492,300 20% Head of household $0–$59,750 0% $59,751–$523,050 15% > $523,050 20% Married filing separately $0–$44,625 0% $44,626–$276,900 15% > $276,900 20% If Jackie's other taxable income (salary) is $78,000, what is the amount of Jackie's tax on these capital transactions? fill in the blank 1 of 1$

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