Taxation I would like to have some guidance for the following question. Thank you kindly. Gerald and Patty Hanson are married taxpayer with the following income and expenses for 2018: Gerald’s w-2 wages: $80,000 Patty’s w-2 wages: $40,000 Patty’s sole proprietorship (Patty is a noted sculptor): Sales $20,000, Materials (8,000), Depreciation (1,000) Interest income on their investments $5,000 Dividend income $500 Additionally, Gerald and Patty incurred the following expenses: Prescription drugs (after insurance) $450 Vitamins 100 Medical insurance premiums 1,350 Braces for their son (not covered by insurance) 1,500 Clinic and hospital bills (after insurance) 800 Property taxes on home 5,000 State income taxes: Withheld from their w-2 6,000, Estimated payments 400 Federal income taxes withheld 30,000 State and local sales tax paid on new personal auto 1,000 Interest on home mortgage 10,000 Interest paid on credit cards 2,400 Cash contributions to church 3,000 Contribution of ABC stock to United Way (FMV $10,000, adjusted basis $2,000) Patty donated a sculpture to the local art museum. The sculpture was appraised at $5,000. Gerald, a CPA, paid $300 for his CPA license. His employer does not reimburse the cost for the license. In addition, Gerald and Patty drove 300 miles this year for medical and dental treatments. Patty also drove 1000 miles to attend a conference for her church. Patty was not a delegate to this conference. Required: 1. Determine Gerald and Patty’s adjusted gross income for 2018. 2. Determine Gerald and Patty’s itemized deductions. 3. Determine Gerald and Patty’s taxable income.

Taxation I would like to have some guidance for the following question. Thank you kindly. Gerald and Patty Hanson are married taxpayer with the following income and expenses for 2018: Gerald’s w-2 wages: $80,000 Patty’s w-2 wages: $40,000 Patty’s sole proprietorship (Patty is a noted sculptor): Sales $20,000, Materials (8,000), Depreciation (1,000) Interest income on their investments $5,000 Dividend income $500 Additionally, Gerald and Patty incurred the following expenses: Prescription drugs (after insurance) $450 Vitamins 100 Medical insurance premiums 1,350 Braces for their son (not covered by insurance) 1,500 Clinic and hospital bills (after insurance) 800 Property taxes on home 5,000 State income taxes: Withheld from their w-2 6,000, Estimated payments 400 Federal income taxes withheld 30,000 State and local sales tax paid on new personal auto 1,000 Interest on home mortgage 10,000 Interest paid on credit cards 2,400 Cash contributions to church 3,000 Contribution of ABC stock to United Way (FMV $10,000, adjusted basis $2,000) Patty donated a sculpture to the local art museum. The sculpture was appraised at $5,000. Gerald, a CPA, paid $300 for his CPA license. His employer does not reimburse the cost for the license. In addition, Gerald and Patty drove 300 miles this year for medical and dental treatments. Patty also drove 1000 miles to attend a conference for her church. Patty was not a delegate to this conference. Required: 1. Determine Gerald and Patty’s adjusted gross income for 2018. 2. Determine Gerald and Patty’s itemized deductions. 3. Determine Gerald and Patty’s taxable income.

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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Taxation

I would like to have some guidance for the following question. Thank you kindly.

Gerald and Patty Hanson are married taxpayer with the following income and expenses for 2018:

Gerald’s w-2 wages: $80,000
Patty’s w-2 wages: $40,000
Patty’s sole proprietorship (Patty is a noted sculptor): Sales $20,000, Materials (8,000), Depreciation (1,000)
Interest income on their investments $5,000
Dividend income $500

Additionally, Gerald and Patty incurred the following expenses:

Prescription drugs (after insurance) $450
Vitamins 100
Medical insurance premiums 1,350
Braces for their son (not covered by insurance) 1,500
Clinic and hospital bills (after insurance) 800
Property taxes on home 5,000
State income taxes: Withheld from their w-2 6,000, Estimated payments 400
Federal income taxes withheld 30,000
State and local sales tax paid on new personal auto 1,000
Interest on home mortgage 10,000
Interest paid on credit cards 2,400
Cash contributions to church 3,000
Contribution of ABC stock to United Way (FMV $10,000, adjusted basis $2,000)
Patty donated a sculpture to the local art museum. The sculpture was appraised at $5,000.
Gerald, a CPA, paid $300 for his CPA license. His employer does not reimburse the cost for the license.

In addition, Gerald and Patty drove 300 miles this year for medical and dental treatments. Patty also drove 1000 miles to attend a conference for her church. Patty was not a delegate to this conference.

Required:

1. Determine Gerald and Patty’s adjusted gross income for 2018.

2. Determine Gerald and Patty’s itemized deductions.

3. Determine Gerald and Patty’s taxable income.

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