Trevor is a single individual who is a cash-method, calendar-year taxpayet expects to report salary of $96,000, contribute $8,800 to charity, and pay $3,200 in state income taxes. Required: a. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the 2021 amounts standard deduction. c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will $2,800 and $22,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 20 using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,800 state tax payments of $3,200 in each year. Trmor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and 2022), Trevor
expects to report salary of $96,000, contribute $8,800 to charity, and pay $3,200 in state income taxes.
Required:
a. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years.
b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined
contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the 2021 amounts for the
standard deduction.
c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost
$2,800 and $22,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022)
using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,800 and
state tax payments of $3,200 in each year.
d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost
$2,800 and $22,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real
estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the
standard deduction.
Complete this question by entering your answers in the tabs below.
Req A
Rea B
Reg C
Reg D
Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years.
(Amounts to be deducted should be indicated with a minus sign. Leave no field blank. Enter zero if applicable.)
2022
Salary
temized deductions
Standard deduction
Greater of standard deduction over itemized deductions
From AGI charitable contribution deduction
Taxable income
$
$
2021
96,000 $
12,000
96,000 $
96,000
12,000
96,000
Transcribed Image Text:Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and 2022), Trevor expects to report salary of $96,000, contribute $8,800 to charity, and pay $3,200 in state income taxes. Required: a. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the 2021 amounts for the standard deduction. c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,800 and $22,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022) using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,800 and state tax payments of $3,200 in each year. d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,800 and $22,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction. Complete this question by entering your answers in the tabs below. Req A Rea B Reg C Reg D Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. (Amounts to be deducted should be indicated with a minus sign. Leave no field blank. Enter zero if applicable.) 2022 Salary temized deductions Standard deduction Greater of standard deduction over itemized deductions From AGI charitable contribution deduction Taxable income $ $ 2021 96,000 $ 12,000 96,000 $ 96,000 12,000 96,000
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