Marc and Michelle are married and earned salaries this year of $73,200 and $15,450, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,650 from corporate bonds. Marc contributed $3,650 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,650. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $8,300 of expenditures that qualify as itemized deductions and they had a total of $7,170 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.)

a. What is Marc and Michelle’s gross income?

b. What is Marc and Michelle’s adjusted gross income?

c. What is the total amount of Marc and Michelle’s deductions from AGI?

d. What is Marc and Michelle’s taxable income?

e. What is Marc and Michelle’s taxes payable or refund due for the year?

Marc and Michelle are married and earned salaries this year of $73,200 and $15,450, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,650 from corporate bonds. Marc contributed $3,650 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,650. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $8,300 of expenditures that qualify as itemized deductions and they had a total of $7,170 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.)

Download the Tax Form and enter the required values in the appropriate fields. Complete the first two pages of Marc and Michelle's Form 1040 (use the most recent form available).

Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save."

federal tax procedure

1040 Department of the Treasury—Internal Revenue Service (99) U.S. Individual Income Tax Return 2017 OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space. For the year Jan. 1–Dec. 31, 2017, or other tax year beginning , 2017, ending , 20 See separate instructions. Your first name and initial Last name Your social security number
If a joint return, spouse’s first name and initial Last name Spouse’s social security number
▲ Make sure the SSN(s) above and on line 6c are correct.
Home address (number and street). If you have a P.O. box, see instructions. Apt. no.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Foreign country name                                        Foreign province/state/county                        Foreign postal code  
Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse
Filing Status
Check only one box.
1 Single 2 Married filing jointly (even if only one had income) 3 Married filing separately. Enter spouse’s SSN above and full name here. ▶
4 Head of household (with qualifying person). (See instructions.) If the qualifying person is a child but not your dependent, enter this child’s name here. ▶ 5 Qualifying widow(er) (see instructions) Exemptions 6a Yourself. If someone can claim you as a dependent, do not check box 6a . . . . . b Spouse . . . . . . . . . . . . . . . . . . . . . . . . } c Dependents: (1) First name                         Last name (2) Dependent’s social security number (3) Dependent’s relationship to you (4) ✓ if child under age 17 qualifying for child tax credit (see instructions)
If more than four dependents, see instructions and check here ▶
d Total number of exemptions claimed . . . . . . . . . . . . . . . . .
Boxes checked on 6a and 6b No. of children on 6c who: • lived with you • did not live with you due to divorce or separation (see instructions) Dependents on 6c not entered above Add numbers on lines above ▶
Income
Attach Form(s) W-2 here. Also attach Forms W-2G and   1099-R if tax was withheld.
If you did not get a W-2,   see instructions.
7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . 7 8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . 8a b Tax-exempt interest. Do not include on line 8a . . . 8b 9 a Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . 9a b Qualified dividends . . . . . . . . . . . 9b 10 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . 10 11 Alimony received . . . . . . . . . . . . . . . . . . . . . 11 12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . 12 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here ▶ 13 14 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . 14 15 a IRA distributions . 15a b Taxable amount . . . 15b 16 a Pensions and annuities 16a b Taxable amount . . . 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17 18 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . 18 19 Unemployment compensation . . . . . . . . . . . . . . . . . 19 20 a Social security benefits 20a b Taxable amount . . . 20b 21 Other income. List type and amount 21 22 Combine the amounts in the far right column for lines 7 through 21. This is your total income ▶ 22
Adjusted Gross Income
23 Educator expenses . . . . . . . . . . . 23 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ 24 25 Health savings account deduction. Attach Form 8889 . 25 26 Moving expenses. Attach Form 3903 . . . . . . 26 27 Deductible part of self-employment tax. Attach Schedule SE . 27 28 Self-employed SEP, SIMPLE, and qualified plans . . 28 29 Self-employed health insurance deduction . . . . 29 30 Penalty on early withdrawal of savings . . . . . . 30 31 a Alimony paid b Recipient’s SSN ▶ 31a 32 IRA deduction . . . . . . . . . . . . . 32 33 Student loan interest deduction . . . . . . . . 33 34 Tuition and fees. Attach Form 8917 . . . . . . 34 35 Domestic production activities deduction. Attach Form 8903 35 36 Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . 36 37 Subtract line 36 from line 22. This is your adjusted gross income . . . . . ▶ 37 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2017)
Form 1040 (2017) Page 2
Tax and Credits
38 Amount from line 37 (adjusted gross income) . . . . . . . . . . . . . . 38 39a Check if: { You were born before January 2, 1953, Blind. Spouse was born before January 2, 1953, Blind.}Total boxes checked ▶ 39a b If your spouse itemizes on a separate return or you were a dual-status alien, check here ▶ 39b
Standard Deduction for— • People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions. • All others: Single or Married filing separately, $6,350 Married filing jointly or Qualifying widow(er), $12,700 Head of household, $9,350
40 Itemized deductions (from Schedule A) or your standard deduction (see left margin) . . 40 41 Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . . . 41 42 Exemptions. If line 38 is $156,900 or less, multiply $4,050 by the number on line 6d. Otherwise, see instructions 42 43 Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . . 43 44 Tax (see instructions). Check if any from: a Form(s) 8814 b Form 4972 c 44 45 Alternative minimum tax (see instructions). Attach Form 6251 . . . . . . . . . 45 46 Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . 46 47 Add lines 44, 45, and 46 . . . . . . . . . . . . . . . . . . . ▶ 47 48 Foreign tax credit. Attach Form 1116 if required . . . . 48 49 Credit for child and dependent care expenses. Attach Form 2441 49 50 Education credits from Form 8863, line 19 . . . . . 50 51 Retirement savings contributions credit. Attach Form 8880 51 52 Child tax credit. Attach Schedule 8812, if required. . . 52 53 Residential energy credits. Attach Form 5695 . . . . 53 54 Other credits from Form: a 3800 b 8801 c 54 55 Add lines 48 through 54. These are your total credits . . . . . . . . . . . . 55 56 Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- . . . . . . ▶ 56
Other Taxes
57 Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . 57 58 Unreported social security and Medicare tax from Form: a 4137 b 8919 . . 58 59 Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required . . 59 60 a Household employment taxes from Schedule H . . . . . . . . . . . . . . 60a b First-time homebuyer credit repayment. Attach Form 5405 if required . . . . . . . . 60b 61 Health care: individual responsibility (see instructions) Full-year coverage . . . . . 61 62 Taxes from: a Form 8959 b Form 8960 c Instructions; enter code(s) 62 63 Add lines 56 through 62. This is your total tax . . . . . . . . . . . . .   ▶ 63 Payments 64 Federal income tax withheld from Forms W-2 and 1099 . . 64 65 2017 estimated tax payments and amount applied from 2016 return 65 If you have a qualifying child, attach Schedule EIC. 66a Earned income credit (EIC) . . . . . . . . . . 66a b Nontaxable combat pay election 66b 67 Additional child tax credit. Attach Schedule 8812 . . . . . 67 68 American opportunity credit from Form 8863, line 8 . . . 68 69 Net premium tax credit. Attach Form 8962 . . . . . . 69 70 Amount paid with request for extension to file . . . . . 70 71 Excess social security and tier 1 RRTA tax withheld . . . . 71 72 Credit for federal tax on fuels. Attach Form 4136 . . . . 72 73 Credits from Form: a 2439 b Reserved c 8885 d 73 74 Add lines 64, 65, 66a, and 67 through 73. These are your total payments . . . . .   ▶ 74 Refund
Direct deposit? See instructions.
75 If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid 75 76a Amount of line 75 you want refunded to you. If Form 8888 is attached, check here . ▶ 76a ▶
▶
b Routing number ▶ c Type: Checking Savings d Account number 77 Amount of line 75 you want applied to your 2018 estimated tax ▶ 77
Amount You Owe
78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions    ▶ 78 79 Estimated tax penalty (see instructions) . . . . . . . 79
Third Party Designee
Do you want to allow another person to discuss this return with the IRS (see instructions)? Yes. Complete below. No Designee’s name ▶ Phone no. ▶ Personal identification number (PIN)              ▶
Sign Here Joint return? See instructions. Keep a copy for your records.
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and accurately list all amounts and sources of income I received during the tax year. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Daytime phone number
Spouse’s signature. If a joint return, both must sign. Date ▲
Spouse’s occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.)
Paid Preparer Use Only
Print/Type preparer’s name Preparer’s signature Date
Check         if self-employed
PTIN
Firm’s name     ▶ Firm’s address ▶
Firm’s EIN ▶ Phone no. Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2017)

course :federal tax procedure

Problem 9 : At the beginning of the year, ABC had $100,000 in Accounts Receivable and $15,000 in Allowance for Doubtful Accounts. During the year ABC sold $900,000 of product on account and collected $930,000 in cash. In addition, ABC wrote-off $10,000 of outstanding Accounts Receivable because a customer declared bankruptcy. a) Determine the ending balance in Accounts Receivable and Allowance for Doubtful Accounts before any adjusting entry or provision for bad debt expense is recorded.

b) Assuming ABC estimates uncollectible accounts as 10% of outstanding Accounts Receivable, prepare the required adjusting entry to record bad debt expense at year end.

c) Determine the Net Realizable Value of Accounts Receivable as of year end.

Suppose a road is flooded with probability p = 0.10 during a year and not more than one flood occurs during a year.

What is the probability that it will be flooded at most twice during a 10-year period?

December of the previous year 50,000, January70,000, February 100,000, March60,000, April100,000. Past experience shows that 45% of sales are collected in the month of the sale, and 55% in the month following the sale.

    2. Prepare a purchases budget for January through March, and the first quarter in total. Assume that the company only sells one product that can be purchased at $35.00 per unit. The market for this product is very competitive and customers highly value service such as quality and on time delivery of the product. Also assume that currently it is company policy that ending inventory should equal 45% of next month’s projected sales. All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (i.e. January purchases are paid in February).

3. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $70,000, and this was the balance in the cash account on January 1^st. Other expenses include $35,000 per month for rent, $24,000 per month for advertising, and $66,000 per month for depreciation. In addition, variable Selling & Administrative cost is $12 per unit sold, and the company paid a $20,000 dividend in February.

The company has an open line of credit with a bank and can borrow at an annual rate of 12%.
For simplification assume that all loans are made at the beginning of the month when borrowing is needed, and repayments are made at the end of a month if there is enough cash to make the payment. Also, interest associated with a loan is only paid at the time when that loan or a portion thereof is paid. Additionally, all loans and repayments (not the interest portion) can only be made in increments of $1000 and the company would like to pay its debts, or a portion thereof, as soon as it has enough cash to do so.

Karen is in her first year of seminary. Prior to joining the seminary, she was a teacher in a small catholic high school. She loves to work with the groups of people she knows in class; but she is always concerned about whether she is doing a good job and whether her peers see her as doing a good job. When she is studying, she gets up and rings her hands, her palms sweat, and she finds that her heart is racing. She spends endless hours studying to make sure she gets things right. With class projects, she begins to feel overwhelmed and sick to her stomach when she has to stand up in front of other people. As she prepares herself to do her presentation the day before, she is either awake till late in night or if she goes to bed, she has problem in sleeping. Joann is a 73-year-old, retired architect who recently went to Japan. While in Japan she fell and broke her femur bone and knee cap. She spent eight weeks in the hospital recovering. She traveled back to the United States and the pins came out of her knee, which meant she had to have more surgery when she returned. She spent six months in physical therapy and seemed to recover nicely. However, in the past few months she has stopped sleeping well, experiences ruminating thoughts about the accident and repeatedly checks to see if her leg works. She also refuses to leave home because she is afraid of falling. On the basis of your understanding of the above scenarios, answer the following: Name and describe the symptoms of the difficulties experienced by each of these women.

Joel's was a quiet twelve-year old with no history of behavior problems at schools or at home. Joel's spent most of the summer indoors playing aggressive video games and had little or no contact with other students over the summer. The first day of school,Austin called Joe by a geek.Joe punched Austin in the nose and pinned him down in the same fashion that his favorite hero does in his combat war game.Joe kept punching Austin until his nose was bloody and then the principal stopped the fight. use the Freudian psychoanalytic theory to explain Joe's behavior and what Joe did to Austin.

A company has the capacity to generate a revenue of $3,000,000 a year. The break even revenue is $2,000,000 a year. From the breakeven point every $100 extra revenue generates $40 extra profit and every $100 decrease in revenue results in $40 extra loss. The costs consist of fixed cost , variable costs which are linear related to the revenue. 1-calculate the fix cost 2-calcualte the variable cost at revenue of $1,500,000 a year. The company decides to purchase another machine, which results in an increase of capacity to 4,000,000 a year. The fixed cost of this expansion is 200,000 a year, and the variable costs are 40$ for 100% revenue. The normal revenues is 4,000,000 a year, and the actual revenues is also $4,000,000. 3- calculate the breakeven point after the expansion. 4- calculate the full cost per dollar revenue after the expansion

Calculate the equity value for the following company. EBITDA in year 1 is expected to be $100M and is expected to grow by 1% for each of the next 5 years. Cap Ex, TIs and LCs are expected to be $7M in year 1 and are expected to grow at 3% for each of the next 5 years. Currently the company has $500M in debt and this is expected to remain constant going forward. Assuming an exit in year 6, what is the equity value of the company today? Assume a 10% discount rate and an 8% cap rate.

This year Amber opened a factory to process and package landscape mulch. At the end of the year, Amber’s accountant prepared the following schedule for allocating manufacturing costs to the mulch inventory, but her accountant is unsure of what costs need to be allocated to the inventory under UNICAP rules. Approximately 20 percent of management time, space, and expenses are spent on this manufacturing process. At the end of the year, Amber’s accountant indicated that the business had processed 10,600 bags of mulch but only 2,120 bags remained in the ending inventory.

What is Amber’s tax basis in her ending inventory after applying the UNICAP rules to allocate indirect costs to inventory? (Assume direct costs are allocated to inventory according to the level of ending inventory. In contrast, indirect costs are first allocated by time spent and then according to level of ending inventory.