Diego, age 28, married Dolores, age 27, in 2015. Their salariesfor the year amounted to $47,126 and they had interest income of$3,500. Diego and Doloresâ deductions for adjusted gross incomeamounted to $2,000, their itemized deductions were $11,576, andthey claimed two exemptions on their return.
a. What is the amount of their adjusted gross income? $
b. What is the amount of their itemized deductions or standarddeduction? $
c. What is the amount of their taxable income? d. What is theirtax liability for 2015?
Problem 10: Download the TAX 2000 Wk 1 Problem 10 Instructionsfor further information
Jim (age 50) and Martha (age 49) are married with threedependent children. They file a joint return for 2015. Their incomefrom salaries totals $49,500, and they received $10,125 in taxableinterest, $5,000 in royalties, and $3,000 in other ordinary income.Jim and Marthaâs deductions for adjusted gross income amount to$3,200, and they have itemized deductions totalling $13,200.Calculate the following amounts:
a. Gross income
b. Adjusted gross income
c. Itemized deduction or standard deduction amount
d. Number of exemptions e. Taxable income
Chapter 2 Lab Work
The IRS requires that certain items be included in gross income,while other items can excluded from gross income. In this Lab Work,you'll be analyzing various scenarios to determine the appropriateamounts of income to include in gross income on Form 1040.
1. Indicate whether each of the items listed below would beincluded (I) in or excluded (E) from gross income for the 2015 taxyear.
a. Welfare payments
b. Commissions
c. Hobby income
d. Scholarships for room and board
e. $300 set of golf clubs, an employee award for length ofservice
f. Severance pay
g. Ordinary dividend of $50
h. Accident insurance proceeds received for personal bodilyinjury
i. Inheritances
j. Gifts
k. Tips and gratuities
2. John installed a new roof on his friendâs house in return fora used truck worth $6,000. How much income must John report on histax return for his services?
3. Larry is a tax accountant and Sheila is a hairdresser. Larryprepares Sheilaâs tax return for free and Sheila agrees to styleLarryâs hair six times for free in return for the tax return. Thevalue of the tax return is approximately $300 and the hair stylingwork is approximately $300.
a. How much of the $300 is includable income to Larry? Why?
b. How much of the $300 is includable income to Sheila? Why?
11. How much of each of the following is taxable?
a. Cheline received a $50,000 gift bag from the Oscars during2015.
b. Jon received a gold watch worth $750 for 25 years of serviceto his accounting firm (not a qualified award).
c. Kerry won $1,000,000 in her state lottery.
d. Deborah is a professor who received $50,000 as an award forher scientific research from the university that employs her
Diego, age 28, married Dolores, age 27, in 2015. Their salariesfor the year amounted to $47,126 and they had interest income of$3,500. Diego and Doloresâ deductions for adjusted gross incomeamounted to $2,000, their itemized deductions were $11,576, andthey claimed two exemptions on their return.
a. What is the amount of their adjusted gross income? $
b. What is the amount of their itemized deductions or standarddeduction? $
c. What is the amount of their taxable income? d. What is theirtax liability for 2015?
Problem 10: Download the TAX 2000 Wk 1 Problem 10 Instructionsfor further information
Jim (age 50) and Martha (age 49) are married with threedependent children. They file a joint return for 2015. Their incomefrom salaries totals $49,500, and they received $10,125 in taxableinterest, $5,000 in royalties, and $3,000 in other ordinary income.Jim and Marthaâs deductions for adjusted gross income amount to$3,200, and they have itemized deductions totalling $13,200.Calculate the following amounts:
a. Gross income
b. Adjusted gross income
c. Itemized deduction or standard deduction amount
d. Number of exemptions e. Taxable income
Chapter 2 Lab Work
The IRS requires that certain items be included in gross income,while other items can excluded from gross income. In this Lab Work,you'll be analyzing various scenarios to determine the appropriateamounts of income to include in gross income on Form 1040.
1. Indicate whether each of the items listed below would beincluded (I) in or excluded (E) from gross income for the 2015 taxyear.
a. Welfare payments
b. Commissions
c. Hobby income
d. Scholarships for room and board
e. $300 set of golf clubs, an employee award for length ofservice
f. Severance pay
g. Ordinary dividend of $50
h. Accident insurance proceeds received for personal bodilyinjury
i. Inheritances
j. Gifts
k. Tips and gratuities
2. John installed a new roof on his friendâs house in return fora used truck worth $6,000. How much income must John report on histax return for his services?
3. Larry is a tax accountant and Sheila is a hairdresser. Larryprepares Sheilaâs tax return for free and Sheila agrees to styleLarryâs hair six times for free in return for the tax return. Thevalue of the tax return is approximately $300 and the hair stylingwork is approximately $300.
a. How much of the $300 is includable income to Larry? Why?
b. How much of the $300 is includable income to Sheila? Why?
11. How much of each of the following is taxable?
a. Cheline received a $50,000 gift bag from the Oscars during2015.
b. Jon received a gold watch worth $750 for 25 years of serviceto his accounting firm (not a qualified award).
c. Kerry won $1,000,000 in her state lottery.
d. Deborah is a professor who received $50,000 as an award forher scientific research from the university that employs her
Related questions
The Tax Formula for Individuals, Filing Status and TaxComputation (LO 1.3, 1.5, 1.6, 1.7)
Diego, age 28, married Dolores, age 27, in 2017. Their salariesfor the year amounted to $94,000 and they had interest income of$3,700. Diego and Dolores' deductions for adjusted gross incomeamounted to $8,240; their itemized deductions were $11,050; theyclaimed two exemptions on their return; and, they filed a jointreturn.
Table for the standard deduction
| ||||||||||||||||||
Click here to access the tax tables.
a. What is the amount of their adjusted grossincome?
$
b. In order to minimize taxable income, Diegoand Dolores will _______ in the amount of $__________
c. What is the amount of their taxableincome?
$
d. What is their tax liability for 2017?
$
The Tax Formula for Individuals, Filing Status and TaxComputation (LO 1.3, 1.5, 1.6, 1.7)
Diego, age 28, married Dolores, age 27, in 2017. Their salariesfor the year amounted to $47,230 and they had interest income of$3,500. Diego and Dolores' deductions for adjusted gross incomeamounted to $2,000; their itemized deductions were $11,800; theyclaimed two exemptions on their return; and, they filed a jointreturn.
Table for the standard deduction
| ||||||||||||||||||
Click here to access the tax tables.
a. What is the amount of their adjusted grossincome?
$
b. In order to minimize taxable income, Diegoand Dolores will in the amount of $.
c. What is the amount of their taxableincome?
$
d. What is their tax liability for 2017?
$
