Donald and Melania are married and file a joint return. They maintain a home for their...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Donald and Melania are married and file a joint return. They maintain a home for their two dependent children. In addition, they have a pet dog named Dumper. Donald and Melania had the following cash receipts during 2021: Salaries received (both Donald and Melania combined) $ 187,000 Inheritance received from deceased uncle 22,000 Qualified cash dividends received 21,000 Nonqualified cash dividends received 20,000 19,000 Cash proceeds received from aunt's life insurance policy (Melania was the designated beneficiary) Loan received from cousin to purchase used car 18,000 Interest received from a city of Philadelphia bond 17,000 Interest received from various corporate bonds 16,000 15,000 Alimony received from Melania's first spouse (Melania divorced first spouse in 2009) Child support received from Melania's first spouse 14,000 Damage award received for physical injuries due to a personal use auto accident 13,000 12,000 Property damage award received from the auto accident (auto originally cost $11,000) Punitive damage award received from the auto accident 11,000 10,000 Unemployment compensation, received for 7 weeks while union was on strike State lottery winnings received (cost of ticket purchased = $10) 9,000 8,000 Sale of Blue Corp. stock (purchased on 2/1/2021 for $6,700) Sale of Grey Corp. stock (purchased on 12/1/2017 for $11,600) 7,000 Sale of personal use mini-van (purchased on 9/11/2015 for $48,000) 26,000 6,000 Savings account withdrawal (The $6,000 withdrawn amount includes interest = $500) Donald and Melania made the following cash payments during 2021: 24,000 Alimony paid to Donald's first spouse (Donald divorced first spouse in 2012) Child support paid to Donald's first spouse 23,000 22,000 Total itemized deductions In addition, Donald attended a sales convention during the year where he entered a contest and won a smart, high definition television worth $3,000. Using the individual income tax formula, calculate Donald and Melania's adjusted gross income for 2021 using good form. Show your calculations. (Note: You do not need to show exclusions in your calculation since they generally do not appear on a tax return. In other words, start by showing each item that is included in "gross income", which is the starting point on an income tax return.) Donald and Melania are married and file a joint return. They maintain a home for their two dependent children. In addition, they have a pet dog named Dumper. Donald and Melania had the following cash receipts during 2021: Salaries received (both Donald and Melania combined) $ 187,000 Inheritance received from deceased uncle 22,000 Qualified cash dividends received 21,000 Nonqualified cash dividends received 20,000 19,000 Cash proceeds received from aunt's life insurance policy (Melania was the designated beneficiary) Loan received from cousin to purchase used car 18,000 Interest received from a city of Philadelphia bond 17,000 Interest received from various corporate bonds 16,000 15,000 Alimony received from Melania's first spouse (Melania divorced first spouse in 2009) Child support received from Melania's first spouse 14,000 Damage award received for physical injuries due to a personal use auto accident 13,000 12,000 Property damage award received from the auto accident (auto originally cost $11,000) Punitive damage award received from the auto accident 11,000 10,000 Unemployment compensation, received for 7 weeks while union was on strike State lottery winnings received (cost of ticket purchased = $10) 9,000 8,000 Sale of Blue Corp. stock (purchased on 2/1/2021 for $6,700) Sale of Grey Corp. stock (purchased on 12/1/2017 for $11,600) 7,000 Sale of personal use mini-van (purchased on 9/11/2015 for $48,000) 26,000 6,000 Savings account withdrawal (The $6,000 withdrawn amount includes interest = $500) Donald and Melania made the following cash payments during 2021: 24,000 Alimony paid to Donald's first spouse (Donald divorced first spouse in 2012) Child support paid to Donald's first spouse 23,000 22,000 Total itemized deductions In addition, Donald attended a sales convention during the year where he entered a contest and won a smart, high definition television worth $3,000. Using the individual income tax formula, calculate Donald and Melania's adjusted gross income for 2021 using good form. Show your calculations. (Note: You do not need to show exclusions in your calculation since they generally do not appear on a tax return. In other words, start by showing each item that is included in "gross income", which is the starting point on an income tax return.)
Expert Answer:
Answer rating: 100% (QA)
Answer Solution As per given details please refer below answer AGI is adjusted gross incom... View the full answer
Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
Posted Date:
Students also viewed these accounting questions
-
During August 2014, Packer Manufacturing had the following cash receipts and disbursements: Cash received from customers .......... $319,000 Cash received from selling equipment ....... 11,200 Cash...
-
Arnie and Angela are married and file a joint return in 2018. Arnie is a partner in a public accounting firm. His share of the partnership's income in the current year is $40,000, and he receives...
-
Sophia and Jacob are married and file a joint return and have come to you to prepare their 2019 tax returns. While reviewing their prior year tax returns, you notice that their 2017 tax return...
-
If a particular glucose fermentation process is 87.0% efficient, how many grams of glucose would be required for the production of 51.0 g of ethyl alcohol (C 2 H 5 OH)? C 6 H 12 O 6 2C 2 H 5 OH +...
-
Define the term contingency fee, explaining how such fees apply to PAs. Do you feel a change is necessary to rules for contingency fees in Canada?
-
For construct a regular expression defining each of the following languages over the alphabet = {a b} : (i) All words that do not have the substring ab. (ii) All words that do not have both the...
-
For each of the following situations, calculate the population standard error of the mean \(\sigma \mathrm{X}^{-}\)and the \(z\)-statistic \((z)\), make a decision about the null hypothesis, and...
-
In general, how in your opinion did Netflix manage to put itself in the enviable position that it occupied at the outset of fiscal 2010? More specifically, how would you account for the suddenand...
-
Popular furniture company, IKEA, has purchased forests in Romania as well as land in Alabama to assist with keeping up with the wood demand necessary to complete customer orders. This was one way...
-
Usonic, Inc., has collected the following information on its cost of electricity: Required a. Prepare a scattergraph of Usonic's electricity costs for the year. Plot the total electricity cost on the...
-
Briefly describe the difficulties inherent to concurrency.
-
A module can be considered a(n) object or unit that can be combined or bound together to form a application. a. Dependent, big and complex b. Dependent, small and easier c. Independent, big and...
-
Each distinct feature in a NetBeans Platform application can be provided by a distinct NetBeans module, and an Apache NetBeans module is a: . a. Java SE application b. Group of classes with specific...
-
The core of the JDBC 4.0 API provides standard JDBC components that are located in the java.sql package, and some additional components such as JNDI and JTS are defined in the JDBC 4.0 Standard...
-
The object provides methods for the creation of Statement objects that will be used to execute Oracle statements in the next step. a. Statement b. Connection c. DriverManager d. Driver
-
Provide a brief description of the JDBC URL.
-
A Calgary-based company (Piedmont Pipelines) has been awarded a contract to lay a long stretch of pipeline. The planned schedule for the laying of pipe can be considered to be accu- rately known for...
-
Identify the source of funds within Micro Credit? How does this differ from traditional sources of financing? What internal and external governance mechanisms are in place in Micro Credit?
-
Is it possible to depreciate a residential rental building when it is actually increasing in value? Why?...
-
Ralph and Kathy Gump are married with one 20-year-old dependent child. Ralph earns a total of $39,000 and estimates their itemized deductions to be $16,000 for the year. Kathy is not employed. Use...
-
Dr. Carol Harris, CPA, is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her Social Security number is 793-52-4335. Carol is an Associate Professor of Accounting at a local...
-
If the 146 customer visits is used to estimate the number of appliance department visits at the larger store population, what are the lower and upper limits of this estimate?
-
What proportion of the 26,280 individuals are in each of the five categories?
-
What are the percentages of observations in each of the five job satisfaction categories?
Study smarter with the SolutionInn App