Required information [The following information applies to the questions displayed below.] Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year. She correctly calculated her AGI. However, she wasn't sure how to compute the rest of her taxable income. She provided the following information with hopes that you could use it to determine her taxable income for 2023. a. Shauna paid $4,706 for medical expenses for care from a broken ankle in October. Also, Shauna's boyfriend, Blake, drove Shauna (in her car) a total of 115 miles to the doctor's office so she could receive care for her broken ankle. b. Shauna paid a total of $3,465 in health insurance premiums during the year (not through an exchange). SD did not reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle, Shauna had Lasik eye surgery last year and paid $3,065 for the surgery (she received no insurance reimbursement). She also incurred $476 of other medical expenses for the year. c. SD withheld $1,865 of state income tax, $7,560 of Social Security tax, and $14,760 of federal income tax from Shauna's paychecks throughout the year. d. In 2023, Shauna was due a refund of $276 for overpaying her 2022 state taxes. On her 2022 state tax return that she filed in April 2023, she applied the overpayment toward her 2023 state tax liability. She estimated that her state tax liability for 2023 will be $2,365. e. Shauna paid $3,265 of property taxes on her personal residence. She also paid $526 to the developer of her subdivision because he had to replace the sidewalk in certain areas of the subdivision. f. Shauna paid a $226 property tax based on the state's estimate of the value of her car. g. Shauna has a home mortgage loan in the amount of $233,000 that she secured when she purchased her home. The home is worth about $413,000. Shauna paid interest of $12,560 on the loan this year. h. Shauna made several charitable contributions throughout the year. She contributed stock in ZYX Corporation to the Red Cross. On the date of the contribution, the fair market value of the donated shares was $1,260 and her basis in the shares was $504. Shauna originally bought the ZYX Corporation stock in 2009. Shauna also contributed $326 cash to State University and religious artifacts she has held for several years to her church. The artifacts were valued at $526 and Shauna's basis in the items was $326. Shauna had every reason to believe the church would keep them on display indefinitely. Shauna also drove 200 miles doing church-related errands for her minister. Finally, Shauna contributed $1,265 of services to her church last year. i. Shauna paid $276 in investment advisory fees and another $176 to have her tax return prepared (that is, she paid $176 in 2023 to have her 2022 tax return prepared). j. Shauna is involved in horse racing as a hobby. During the year, she won $2,565 in prize money and incurred $12,600 in expenses. She has never had a profitable year with her horse-racing activities, so she acknowledges that this is a hobby for federal income tax purposes. k. Shauna sustained $2,065 in gambling losses over the year (mostly horse-racing bets) and had only $226 in winnings. . Assume Shauna's AGI is $120,000. Determine Shauna's taxable income. lote: Round your intermediate calculations to the nearest whole dollar amount. Taxable income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to
determine her taxable income for this year. She correctly calculated her AGI. However, she wasn't sure how to compute
the rest of her taxable income. She provided the following information with hopes that you could use it to determine her
taxable income for 2023.
a. Shauna paid $4,706 for medical expenses for care from a broken ankle in October. Also, Shauna's boyfriend, Blake,
drove Shauna (in her car) a total of 115 miles to the doctor's office so she could receive care for her broken ankle.
b. Shauna paid a total of $3,465 in health insurance premiums during the year (not through an exchange). SD did not
reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle,
Shauna had Lasik eye surgery last year and paid $3,065 for the surgery (she received no insurance reimbursement).
She also incurred $476 of other medical expenses for the year.
c. SD withheld $1,865 of state income tax, $7,560 of Social Security tax, and $14,760 of federal income tax from Shauna's
paychecks throughout the year.
d. In 2023, Shauna was due a refund of $276 for overpaying her 2022 state taxes. On her 2022 state tax return that she
filed in April 2023, she applied the overpayment toward her 2023 state tax liability. She estimated that her state tax
liability for 2023 will be $2,365.
e. Shauna paid $3,265 of property taxes on her personal residence. She also paid $526 to the developer of her
subdivision because he had to replace the sidewalk in certain areas of the subdivision.
f. Shauna paid a $226 property tax based on the state's estimate of the value of her car.
g. Shauna has a home mortgage loan in the amount of $233,000 that she secured when she purchased her home. The
home is worth about $413,000. Shauna paid interest of $12,560 on the loan this year.
h. Shauna made several charitable contributions throughout the year. She contributed stock in ZYX Corporation to the
Red Cross. On the date of the contribution, the fair market value of the donated shares was $1,260 and her basis in the
shares was $504. Shauna originally bought the ZYX Corporation stock in 2009. Shauna also contributed $326 cash to
State University and religious artifacts she has held for several years to her church. The artifacts were valued at $526
and Shauna's basis in the items was $326. Shauna had every reason to believe the church would keep them on display
indefinitely. Shauna also drove 200 miles doing church-related errands for her minister. Finally, Shauna contributed
$1,265 of services to her church last year.
i. Shauna paid $276 in investment advisory fees and another $176 to have her tax return prepared (that is, she paid $176
in 2023 to have her 2022 tax return prepared).
j. Shauna is involved in horse racing as a hobby. During the year, she won $2,565 in prize money and incurred $12,600 in
expenses. She has never had a profitable year with her horse-racing activities, so she acknowledges that this is a
hobby for federal income tax purposes.
k. Shauna sustained $2,065 in gambling losses over the year (mostly horse-racing bets) and had only $226 in winnings.
. Assume Shauna's AGI is $120,000. Determine Shauna's taxable income.
lote: Round your intermediate calculations to the nearest whole dollar amount.
Taxable income
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year. She correctly calculated her AGI. However, she wasn't sure how to compute the rest of her taxable income. She provided the following information with hopes that you could use it to determine her taxable income for 2023. a. Shauna paid $4,706 for medical expenses for care from a broken ankle in October. Also, Shauna's boyfriend, Blake, drove Shauna (in her car) a total of 115 miles to the doctor's office so she could receive care for her broken ankle. b. Shauna paid a total of $3,465 in health insurance premiums during the year (not through an exchange). SD did not reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle, Shauna had Lasik eye surgery last year and paid $3,065 for the surgery (she received no insurance reimbursement). She also incurred $476 of other medical expenses for the year. c. SD withheld $1,865 of state income tax, $7,560 of Social Security tax, and $14,760 of federal income tax from Shauna's paychecks throughout the year. d. In 2023, Shauna was due a refund of $276 for overpaying her 2022 state taxes. On her 2022 state tax return that she filed in April 2023, she applied the overpayment toward her 2023 state tax liability. She estimated that her state tax liability for 2023 will be $2,365. e. Shauna paid $3,265 of property taxes on her personal residence. She also paid $526 to the developer of her subdivision because he had to replace the sidewalk in certain areas of the subdivision. f. Shauna paid a $226 property tax based on the state's estimate of the value of her car. g. Shauna has a home mortgage loan in the amount of $233,000 that she secured when she purchased her home. The home is worth about $413,000. Shauna paid interest of $12,560 on the loan this year. h. Shauna made several charitable contributions throughout the year. She contributed stock in ZYX Corporation to the Red Cross. On the date of the contribution, the fair market value of the donated shares was $1,260 and her basis in the shares was $504. Shauna originally bought the ZYX Corporation stock in 2009. Shauna also contributed $326 cash to State University and religious artifacts she has held for several years to her church. The artifacts were valued at $526 and Shauna's basis in the items was $326. Shauna had every reason to believe the church would keep them on display indefinitely. Shauna also drove 200 miles doing church-related errands for her minister. Finally, Shauna contributed $1,265 of services to her church last year. i. Shauna paid $276 in investment advisory fees and another $176 to have her tax return prepared (that is, she paid $176 in 2023 to have her 2022 tax return prepared). j. Shauna is involved in horse racing as a hobby. During the year, she won $2,565 in prize money and incurred $12,600 in expenses. She has never had a profitable year with her horse-racing activities, so she acknowledges that this is a hobby for federal income tax purposes. k. Shauna sustained $2,065 in gambling losses over the year (mostly horse-racing bets) and had only $226 in winnings. . Assume Shauna's AGI is $120,000. Determine Shauna's taxable income. lote: Round your intermediate calculations to the nearest whole dollar amount. Taxable income
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