Question

In: Accounting

Comprehensive Problem (Tax Return Problem). Rodney and Alice Jones have three small children, ranging in age...

Comprehensive Problem (Tax Return Problem). Rodney and Alice Jones have three small children, ranging in age from 5 to 10. One child is blind and needs special care. Rodney works as an accountant for a large CPA firm and has gross income of $45,000. Alice is a lawyer with a national law firm and earns $48,000. Rodney’s parents are quite old, and he and his wife fully support them.

Rodney’s employer provides group-term life insurance at twice the employee’s annual salary. Rodney is 40 years of age.

During 2018, Rodney and Alice receive the following dividends on their jointly held investments:

Dividends from Mexico Inc. (Mexican Corp.) $700

Dividends from Widget Steel Corp. $150

They received interest income from the following investments: Interest on State of Ohio highway bonds $800

Interest on deposits in savings and loans $400

The Joneses have itemized deductions of $25,000. Compute their taxable income. * NOTE: THIS IS FOR 2018*

Solutions

Expert Solution

ANSWER:

Here we have 2 persons namely "Rodney" and "Alice Jones",

We have to determine the Taxable income of above 2 persons

so by using given data we construct a spread sheet to evaluate Taxable income,

1.Taxable income of Rodney:

Description Income($)
Salary 45,000
Dividends from Mesxico Inc(mexcian corp.) /2 700/2 350
Dividends from Widget streetcorp /2 150/2 75
Interest on deposites in savings and loans /2 400/2 200
Interest in the state of ohio highway bonds /2 800/2 400
Gross total income 45,00+350+75+400+200 46,025
Deductions - 0
Taxable income Gross totalincome- deductions=46,025-0 46,025

2.Taxable income for Alice Jones:

Description Explanation Income($)
Salary 48,000
Dividends from Mexico IncMexican corp)/2 700/2 350
Dividends from Widget street corp /2 150/2 75
Intrest in the state of ohio highway bonds/2 800/2 400
Interest on dposite in savings and loans/2 400/2 200
Gross total income 48,000+350+75+400+200 49,025
Deductions 15,000
Taxable income Gross total income-deductions=49,025-15,000 34,025

ekkarill92 answered 7 months ago
Next > < Previous

Related Solutions

Comprehensive Problem (TAX RETURN PROBLEM) Barry and Connie, Husband and wife, are both age 24, and...
Comprehensive Problem (TAX RETURN PROBLEM) Barry and Connie, Husband and wife, are both age 24, and have two sons. Barry earned $51,000 and Connie earned $45,000 during 2020. They both paid $4,200 state income taxes, $12,000 federal income taxes, $5,500 property taxes, $14,600 to First Presbyterian Church, $600 to needy families, $6,400 interest on their mortgage, and $6,800 medical expenses. In addition, they had the following transaction: a) They sold their personal residence for $170,000. Their basis in the residence...
John and his wife Kila have four children, and they file their tax return jointly. Three...
John and his wife Kila have four children, and they file their tax return jointly. Three of the children are under 17 and live at home. The fourth child is 20 and lives away at university. John and Kila’s combined AGI for the year was $439,300. The phase-out for the child tax credit begins at an AGI of $400,000. How much child tax credit can they claim on their 2019 tax return? $4,500 $4,535 $6,500 $8,000
Comprehensive Problem (Tax Return Problem). David and Doris Kelley were divorced on February 3, 2018. They...
Comprehensive Problem (Tax Return Problem). David and Doris Kelley were divorced on February 3, 2018. They lived apart during 2018. The divorce decree required David to make the following payments: a. Transfer full title to their jointly owned family home to Doris. Fair market value of the home is $180,000, basis $150,000 . b. $1,000 per month mortgage payments on the house, above. The mortgage has 20 years remaining before being fully paid off, but the payments would end on...
2016 Comprehensive Tax Return Complete the federal tax return below for the current tax year listed...
2016 Comprehensive Tax Return Complete the federal tax return below for the current tax year listed above.. Use Form 1040, Schedule A, and Schedule B to complete this return. You can print these forms off of the I RS website by going to IRS website and search for the forms. Jim Wallace (age 40) is a single taxpayer, and he lives at 1234 Hallmark Way, Warner Robins, GA 31088. His Social Security number is 555-94-9358. Jim’s earnings and withholdings as...
Please complete the 2019 federal income tax return for Alice J. and Bruce M. Byrd. Alice...
Please complete the 2019 federal income tax return for Alice J. and Bruce M. Byrd. Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alice’s birthday is September 21, 1971, and Bruce’s is June 27, 1970. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (employer identification number 98-7654321). Bruce is...
Patient S is a white woman, 43 years of age, and mother of three small children....
Patient S is a white woman, 43 years of age, and mother of three small children. She has a long-standing history of significant obesity with little success in dieting over the years. At 5'3", she is obese, weighing 220 pounds. Her fat distribution is "apple-shaped" and consequently, her waist-hip ratio is more than the 0.8 normal range. In addition, Patient S lives a fairly sedentary lifestyle and does not have a regular exercise program. Her dietary habits do not take...
Patient S is a white woman, 43 years of age, and mother of three small children....
Patient S is a white woman, 43 years of age, and mother of three small children. She has a long-standing history of significant obesity with little success in dieting over the years. At 5'3", she is obese, weighing 220 pounds. Her fat distribution is "apple-shaped" and consequently, her waist-hip ratio is more than the 0.8 normal range. In addition, Patient S lives a fairly sedentary lifestyle and does not have a regular exercise program. Her dietary habits do not take...
ACT405 – Portfolio Project Case 2 Comprehensive Tax Problem – Option 2 Taxpayer Information                   Name:   Bryan Jones...
ACT405 – Portfolio Project Case 2 Comprehensive Tax Problem – Option 2 Taxpayer Information                   Name:   Bryan Jones                   Address:   1200 Main St.                                         Green Bay, Wisconsin 12345                   DOB:   5/6/1976                   Filing Status:  Single                   SSN:  500-10-2000                   Occupation:  Staff Accountant INCOME INFORMATION:                   Wages and Compensation The following information is taken from Bryan Jone’s 2017 Form W-2 Wage and Tax Statement:                                                        Box 1 – Wages, tips, and other compensation 52,000 Box 2 – Federal Withholding 8,750 Box 17 – State Income Tax Withholding 1,000                   Interest and Dividends                   Bryan has some Certificates...
Mike (age 40) and Molly (age 38) are married and have three children ages 5, 10,...
Mike (age 40) and Molly (age 38) are married and have three children ages 5, 10, and 13. Their salaries for the year amounted to $91,375 and they received $3,750 of taxable interest income. Mike and Molly’s deductions for adjusted gross income amounted to $3,150, and their itemized deductions were $13,250. Mike and Molly file a joint income tax return for 2017. Calculate the following amounts (answer each question independently from all other questions): A.Adjusted gross income (AGI). Show the...
Problem 1: John and Mary are married and file a joint return claiming their three children...
Problem 1: John and Mary are married and file a joint return claiming their three children ages 4, 5, and 18, as dependents. Their AGI is $125,400 and their pre credit tax liability is $13, 431. They are not claiming any other tax credits in 2019. Complete the Child Tax Credit Worksheet Parts 1 and 2 to determine John and Mary’s child tax credit for 2019. Problem 2: Jose and Jamie have a 5-year-old child. Jose has a salary of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT