Homework
Carlos Santos AC553 ‐ Federal Taxes and Management Decisions Professor Robey Friday, January 06, 2012
Homework
Problems (Show your work.): 3-31, 3-32, 3-36, 13-55, and 13-69
3‐31)
Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $11,950 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2011? AGI $ 40,000.00 Itemized Deduction > Standard (11,950.00) 4 Exemptions (14,800.00) Taxable Income $ 13,250.00 Compute Marie's taxable income for 2011, assuming she is single and claims two dependent children. Her adjusted gross income is $70,000, and she has itemized deductions of $9,000. AGI $ 70,000.00 Itemized Deduction > HOH Standard (9,000.00) 3 Exemptions (11,100.00) Taxable Income $ 49,900.00 Compute Stanley's taxable income for 2011, assuming he has $1,000 in wages from working in a grocery store and $2,000 in interest income from some bonds he owns. Stanley, age 16, is claimed as a dependent on his parents' return. Earned Income $ 1,000.00 Unearned Income 2,000.00 Gross Income $ 3,000.00 Standard Deduction (1,300.00) Taxable Income $ 1,700.00
3‐32)
3‐36)
13‐55) Mr. Z, a nondealer, sold assets on an installment plan. Determine Mr. Z's gross income for 2011. Relevant data include: 2 3 1 4 Gain Gross Profit % Recognized in 2011 (3*4) (2/3) $ 6,250.00 25% 27% 21,600.00 30,000.00 24% Total Gross Income $ 57,850.00 13‐69) Comprehensive Problem. Bill is a cash‐basis, calendar‐year taxpayer. Which of the following December items result in gross income or deductions for the current year? a. Check received for December rent, $700, not deposited until January 4 Income ‐ constructively received in current year b. Check for $1,100 to pay Bill's state income taxes mailed December 28, cashed January 7 Deduction ‐ paid for in current year c. Cash received in the amount of $500 for services to
Homework
Problems (Show your work.): 3-31, 3-32, 3-36, 13-55, and 13-69
3‐31)
Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $11,950 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2011? AGI $ 40,000.00 Itemized Deduction > Standard (11,950.00) 4 Exemptions (14,800.00) Taxable Income $ 13,250.00 Compute Marie's taxable income for 2011, assuming she is single and claims two dependent children. Her adjusted gross income is $70,000, and she has itemized deductions of $9,000. AGI $ 70,000.00 Itemized Deduction > HOH Standard (9,000.00) 3 Exemptions (11,100.00) Taxable Income $ 49,900.00 Compute Stanley's taxable income for 2011, assuming he has $1,000 in wages from working in a grocery store and $2,000 in interest income from some bonds he owns. Stanley, age 16, is claimed as a dependent on his parents' return. Earned Income $ 1,000.00 Unearned Income 2,000.00 Gross Income $ 3,000.00 Standard Deduction (1,300.00) Taxable Income $ 1,700.00
3‐32)
3‐36)
13‐55) Mr. Z, a nondealer, sold assets on an installment plan. Determine Mr. Z's gross income for 2011. Relevant data include: 2 3 1 4 Gain Gross Profit % Recognized in 2011 (3*4) (2/3) $ 6,250.00 25% 27% 21,600.00 30,000.00 24% Total Gross Income $ 57,850.00 13‐69) Comprehensive Problem. Bill is a cash‐basis, calendar‐year taxpayer. Which of the following December items result in gross income or deductions for the current year? a. Check received for December rent, $700, not deposited until January 4 Income ‐ constructively received in current year b. Check for $1,100 to pay Bill's state income taxes mailed December 28, cashed January 7 Deduction ‐ paid for in current year c. Cash received in the amount of $500 for services to