Question

Bill and Janet are a married couple filing jointly in 2018 and have one child, Robert, who is 9 years old. Robert has interest income of $3,000 in 2018. Bill and Janet’s taxable income in 2018 is $46,050 and they take the standard deduction as the only from AGI deduction.

Click here to access the trust and estate tax rate schedule and the individual income tax schedules.

Calculate Robert’s tax liability for 2018, assuming:

a.  Bill and Janet do not make the election to include Robert’s income on their tax return.
$_____________

b.  Bill and Janet make the election to include Robert’s income on their tax return.
$____________

Juniper Corporation has taxable income of $48,000 for the short period ended on October 31, 2018.

Calculate Juniper Corporation's short-period tax for the period January 1 through October 31, 2018. Assume that this is not the first or last year of operations. The corporate tax rate is 21 percent.

If required, round any division to four decimal places and round your answer to the nearest dollar. Base the allocation on months, not days.

Juniper Corporation's short-period tax is $.__________

Melaleuca, Inc., is an accrual basis taxpayer with the following transactions during the calendar tax year:

Accrual business income (except rent and interest) $63,000 Accrual business expenses (except rent) 42,000 Three months' rent received on a leased building on November 1 of this year 9,000 Prepaid interest for 1 year received on a note on July 1 of the current year 12,000 Six months' rent paid on December 1 for business property 7,200

Calculate Melaleuca, Inc.'s, net income for this year.
$____________

Answer 1

A Bill and Janet do not make the election to include Robert's income on their tax return.

. Bill and Janet make the election to include Robert's income on their tax return

Calculate Melaleuca, Inc.'s, net income for this year.

business income 63000 - business expenses 42000 = Operating Income 21000 + Rent received 9000 + prepaid interest 12000 - rent expense for one month (7200/6) 1200 = 40800 net income