Questions
The actual 1040 form filled out. Tax Return Problem Lance H. and Wanda B. Dean are...

The actual 1040 form filled out.

Tax Return Problem Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm.

During 2016, the Deans had the following receipts:

Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000
Interest income—
 City of Albuquerque general purpose bonds $1,000
 Ford Motor company bonds 1,100
 Ally Bank certificate of deposit 400 2,500
Child support payments from John Allen 7,200
Annual gifts from parents 26,000
Settlement from Roadrunner Touring Company 90,000
Lottery winnings 600
Federal income tax refund (for tax year 2015) 400

Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to pay alimony and child support—the alimony payments were to terminate if Wanda remarried.

In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained.

The Deans had the following expenditures for 2016:

Medical expenses (not covered by insurance) $7,200
Taxes—
 Property taxes on personal residence $3,600
 State of New Mexico income tax (includes amount withheld from wages during 2016) 4,200 7,800
Interest on home mortgage (First National Bank) 6,000
Paid church pledge 3,600
Life insurance premiums (policy on Lance's life) 1,200
Contribution to traditional IRA (on Wanda's behalf) 5,000
Traffic fines 300
Contribution to the reelection campaign fund of the mayor of Santa Fe 500
Funeral expenses for Wayne Boyle 6,300

The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution.

The Deans' household includes the following, for whom they provide more than half of the support:

Social Security Number Birth Date
Lance Dean (age 42) 123-45-6786 12/16/1974
Wanda Dean (age 40) 123-45-6787 08/08/1976
Penny Allen (age 19) 123-45-6788 10/09/1997
Kyle Allen (age 17) 123-45-6789 05/03/1999
Wayne Boyle (age 75) 123-45-6785 06/15/1941

Penny graduated from high school on May 9, 2016, and is undecided about college. During 2016, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on January 20, 2016. For the past few years, Wayne qualified as a dependent of the Deans.

Federal income tax withheld is $5,200 (Lance) and $3,100 (Wanda). The proper amount of Social Security and Medicare tax was withheld.

Determine the Federal income tax for 2016 for the Deans on a joint return by completing the appropriate forms. They do not want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2016. If an overpayment results, it is to be refunded to them. Suggested software: H&R BLOCK Tax Software.

In: Accounting

1. Describe the energy requirements and metabolism of the various skeletal muscle types (slow oxidative and...

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Implementing changes in business planning is only part of a larger process of managing major changes in business processes which employees do not like. State and explain five recommendations from change experts to minimize resistance.

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Bonus, Capital and Smoothing would have an immeditae impact when making accounting changes. If GAAP allows...

Bonus, Capital and Smoothing would have an immeditae impact when making accounting changes. If GAAP allows such changes, what are the procedures for determining if a change can be made. Do you have an example or two of bonus, capital and smoothing ?

In: Accounting

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A publically traded company more than doubled its EPS by changing depreciation methods. In justifying the...

A publically traded company more than doubled its EPS by changing depreciation methods. In justifying the change, management supported the change as follows: In comparison to direct competitors, the previous depreciation method was more conservative and thus had a negative impact on earnings.

Although difficult to prove, there is considerable evidence that accounting changes are made for reasons other than improved financial reporting. GAAP are flexible in the initial selection of accounting methods and in making subsequent changes. However, the accounting standards specifically require that only changes to preferable accounting methods be made.

Comment on the appropriateness of making accounting changes to fulfill financial reporting objectives, Consisder relevant ethical issues in your response. Who are the stakeholders? Does this violate GAAP? What is the ethical issue? What is an alternative course of action?

In: Accounting

Currently Delta's market capitalization is (approximately) $21.1 billion and beta is 1.3. What does this mean?...

Currently Delta's market capitalization is (approximately) $21.1 billion and beta is 1.3. What does this mean?

  • A. The total value of Delta's stock is valued at $21.1 billion and the stock price typically changes by (approximately) a smaller percentage as the S&P 500 index.
  • B. The total value of Delta's stock is valued at $21.1 billion and the stock price typically changes by (approximately) a smaller percentage as the Dow Jones Industrial Average index.
  • C. The total value of Delta Air is valued at $21.1 billion and the stock price typically changes by (approximately) a larger percentage as the S&P 500 index.
  • D. The total value of Delta Air is valued at $21.1 billion and the stock price typically changes by (approximately) a larger percentage as the Dow Jones Industrial Average index.
  • E. None of the above.

In: Economics