Chapter 16, Problem 16.4BE

Provide correct answer the accounting question

Complete the 2024 federal income tax return for Caleb and Anne Stone. You may assume the Stones have substantiated all expenses that qualify for tax deductions and tax credits In preparing their tax return, you may use Form 1040, Schedule 1, 2, 3, A, B, C, D, E, and SE, Form 2441, 4562, 8582, 8863, 8949, 8995 and other forms if necessary. Please read the following assumptions and instructions: 1. Meal expenses associated with their business are 50% deductible. Family Information: Husband Caleb Stone SSN 598-94-2583 Birthday: 8/21/1970 Wife Anne Stone SSN 301-52-2942 Birthday: 4/15/1974 Home address 461 Golden Ave, Long Beach, CA 90802 Son Henry Stone SSN 614-42-5871 Birthday: 2/08/2005 Daughter Izzy Stone SSN 658-98-7480 Birthday: 6/13/2013   Facts: In 2019, Caleb Stone purchased an annuity from MyLife for $120,000. Monthly payments of $2,000 on the annuity started on January 15, 2024 and will continue for a total of 15 years.   2. On…

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Plant Asset $ 460,000 235,000 2,050,000 1,180,000 Accumulated Depreciation $ - 56,000 361,000 Equipment Automobiles 205,000 416,000 123,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $315,000, which included a $6,600 charge for freight. Installation costs of $38,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $30,000. The fair value of the building on the day of the donation was $20,000. c. On May 1, 2024, expenditures of $61,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those…

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I. Prepare a flexible budget for overhead based on the following data: Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 900 1,000 1,100 Variable overhead Fixed overhead $3,600 $ 4,000 $ 4,400 $6,000 $ 6,000 Total overhead $9,600 $10,000 $ 6,000 $10,400 II. Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $10,000/4,000 = $2.50 per direct labor hour Direct materials are $67.50 per unit. Direct labor is $23.50 per hour. Use the following standard cost card for 1 gallon of ice cream to answer the questions. Product: Gallon of Ice Cream STANDARD COST CARD Manufacturing Standard Cost Information Quantity Standard Cost per Unit Cost Summary Direct Materials Cream 6 quarts $1.00 per quart $6.00 Sugar 15 ounces $0.07 per ounce $1.05 Direct Labor 3 minutes $38.00 per hour $1.90 Total Direct Costs $8.95 Next page 1| Page Actual direct costs incurred to make 50 gallons of ice cream: • 275 quarts of cream at…

[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 $95,000 and qualified business income of $20,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $250,000 and they sold it for $300,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,500 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 for each of their children. However, because Candice was 18 years of age at year end, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.)

Tom Hale was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his spouse and his real estate to a church (an “A” charity). The remainder of Tom’s assets were to be placed in trust for three children. Tom’s estate consisted of the following: Assets:   Personal assets $ 1,340,000 Cash and stock 26,400,000 Intangible assets (film rights) 83,500,000 Real estate 17,400,000   $ 128,640,000 Liabilities:   Mortgage $ 5,600,000 Other liabilities 6,500,000   $ 12,100,000 Tom made a taxable gift of $7.50 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2.) Note: Enter your answers in dollars, not millions of dollars. EXHIBIT 25-1 Unified Transfer Tax Rates* Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over $       0 $10,000 $     0    18% $      0 10,000 20,000 1,800 20 10,000 20,000 40,000 3,800 22 20,000…

Harold and Maude were married and lived in a common-law state. Maude died in 2018 with a taxable estate of $25.8 million and left it all to Harold. Maude's executor filed a timely estate tax return claiming the marital deduction for the property left to Harold including a valid portability election. Harold died this year, leaving a total estate of $25.8 million to their three children.(Refer to Exhibit 25-1 and Exhibit 25-2.) Calculate how much estate tax is due from Harold's estate under the following two alternatives. A. Assume that neither Harold nor Maude had made any taxable gifts prior to this year. B. Assume that Harold and Maude each made a $1 million taxable gift in 2011 and offset the gift tax at that time with the applicable credit. Note: For all requirements, enter your answers in dollars and not in millions of dollars. EXHIBIT 25-1 Unified Transfer Tax Rates* Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over $       0 $10,000 $     0    18% $…