Question: I just need help figuring this out!! thank you! [The following informotion opplies to the questions disployed below.] Diana and Ryan Workman were married on

I just need help figuring this out!! thank you!
[The following informotion opplies to the questions disployed below.] Diana and Ryan Workman were married on January 1 of last year. Ryan has an eight-year-old son, Jorge, from his previous marriage. Diana works as a computer programmer at Datafile Incorporated (DI) earning a salary of $96,000. Ryan is selfemployed and runs a day care center. The Workmans reported the following financial information pertaining to their octivities during the current year. a. Dians earned a $96,000 salary for the year. b. Dians borrowed $12,000 from DI to purchase a car. DI charged her 2 percent interest ($240) on the loon, which Dians paid on December 31 . DI would have charged Diana $720 if interest had been calculated at the applicable federal interest rate. Assume that tax avoidance was not a motive for the losn. c. Rysn received $2,000 in alimony and $4,500 in child support poyments from his former spouse. They divorced in 2016. d. Ryan won a $900 cosh prize at his church-sponsored Bingo game. e. The Workmans received $500 of interest from corporate bonds and $250 of interest from a municipal bond. Ryan owned these bonds before he married Diana. f. The couple bought 50 shares of ABC Incorporated stock for $40 per share on July 2 . The stock was worth $47 a share on December 31 . The stock poid a dividend of $1.00 per share on December 1 . g. Ryan's father possed owvy on April 14. He inherited cash of $50,000 from his father and his bsseball card collection, valued at $2,000. As the beneficiary of his father's life insurence policy, Rysn also received $150,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $1,200. 1. Disna received $400 cash for resching 10 years of continuous service at. DI. J. Diand was hit and injured by a drunk driver while crossing a street at a crosswalk. she was unable to work for a month. She received $6,000 from her disability insurance. DI paid the premiums for Disns, but it reported the amount of the premiums as compensation to Dians on her year-end W-2 k. The drunk driver who hit Diane in part (j) was required to pay her $2,000 medical costs, $1,500 for the emotional troums she suffered from the sccident, and $5,000 for punitive dameges. I. For meeting her performance goals this year, Dians wos informed on December 27 that she would receive 0$5,000 year-end bonus. DI (located in Houston, Texas) mailed Dians's bonus check from its poyroll processing center (Tamps, Florida) on December 28 . Disna didn't receive the check at home until Janusry 2 m. Ryan is a 10 percent owner of MNO Incorporeted, a Subchapter S corporation. The company reported ordinary business income for the year of $92,000. Ryon acquired the MNO stock two years ago. n. Ryan's day care business collected $35,000 in revenues. In sodition, customers owed him $3,000 at year.end. During the year, Ryan spent $5,500 for supplies, $1,500 for utilities, $15,000 for rent, and $500 for miscellaneous expenses. One customer gove him use of their vacation home for a week (worth $2,500 ) in exchange for Ryon allowing their child to sttend the dsy care center free of charge. Ryon accounts for his business activities using the cosh method of sccounting. o. Disnd's employer poys the couple's annusl health insurance premiums of $5,500 for quslified plan. 4. Complete page 1 of Form 1040 through line 9 and Schedule 1 for Diana Workmen (for filing MFS). Note: Input all the values as positive numbers. Enter any non-financlal Information, (e.g. Names, Addresses, soclal security numbers) EXACTLY as they appear In any given Informatlon or Problem Statement. Do not skip rows, while entering in Deductions section of Form 1040 PG1. Assume the dividends are qualified dividends. Assume Diana claims Jorge as her dependent. Dlana does not wish to contribute to the Presidential Election Campaign fund and did not have any virtual currency transactions or Interests. Diana's address is 19010 N.W. 135th Street, Miami, FL 33054 F [The following informotion opplies to the questions disployed below.] Diana and Ryan Workman were married on January 1 of last year. Ryan has an eight-year-old son, Jorge, from his previous marriage. Diana works as a computer programmer at Datafile Incorporated (DI) earning a salary of $96,000. Ryan is selfemployed and runs a day care center. The Workmans reported the following financial information pertaining to their octivities during the current year. a. Dians earned a $96,000 salary for the year. b. Dians borrowed $12,000 from DI to purchase a car. DI charged her 2 percent interest ($240) on the loon, which Dians paid on December 31 . DI would have charged Diana $720 if interest had been calculated at the applicable federal interest rate. Assume that tax avoidance was not a motive for the losn. c. Rysn received $2,000 in alimony and $4,500 in child support poyments from his former spouse. They divorced in 2016. d. Ryan won a $900 cosh prize at his church-sponsored Bingo game. e. The Workmans received $500 of interest from corporate bonds and $250 of interest from a municipal bond. Ryan owned these bonds before he married Diana. f. The couple bought 50 shares of ABC Incorporated stock for $40 per share on July 2 . The stock was worth $47 a share on December 31 . The stock poid a dividend of $1.00 per share on December 1 . g. Ryan's father possed owvy on April 14. He inherited cash of $50,000 from his father and his bsseball card collection, valued at $2,000. As the beneficiary of his father's life insurence policy, Rysn also received $150,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $1,200. 1. Disna received $400 cash for resching 10 years of continuous service at. DI. J. Diand was hit and injured by a drunk driver while crossing a street at a crosswalk. she was unable to work for a month. She received $6,000 from her disability insurance. DI paid the premiums for Disns, but it reported the amount of the premiums as compensation to Dians on her year-end W-2 k. The drunk driver who hit Diane in part (j) was required to pay her $2,000 medical costs, $1,500 for the emotional troums she suffered from the sccident, and $5,000 for punitive dameges. I. For meeting her performance goals this year, Dians wos informed on December 27 that she would receive 0$5,000 year-end bonus. DI (located in Houston, Texas) mailed Dians's bonus check from its poyroll processing center (Tamps, Florida) on December 28 . Disna didn't receive the check at home until Janusry 2 m. Ryan is a 10 percent owner of MNO Incorporeted, a Subchapter S corporation. The company reported ordinary business income for the year of $92,000. Ryon acquired the MNO stock two years ago. n. Ryan's day care business collected $35,000 in revenues. In sodition, customers owed him $3,000 at year.end. During the year, Ryan spent $5,500 for supplies, $1,500 for utilities, $15,000 for rent, and $500 for miscellaneous expenses. One customer gove him use of their vacation home for a week (worth $2,500 ) in exchange for Ryon allowing their child to sttend the dsy care center free of charge. Ryon accounts for his business activities using the cosh method of sccounting. o. Disnd's employer poys the couple's annusl health insurance premiums of $5,500 for quslified plan. 4. Complete page 1 of Form 1040 through line 9 and Schedule 1 for Diana Workmen (for filing MFS). Note: Input all the values as positive numbers. Enter any non-financlal Information, (e.g. Names, Addresses, soclal security numbers) EXACTLY as they appear In any given Informatlon or Problem Statement. Do not skip rows, while entering in Deductions section of Form 1040 PG1. Assume the dividends are qualified dividends. Assume Diana claims Jorge as her dependent. Dlana does not wish to contribute to the Presidential Election Campaign fund and did not have any virtual currency transactions or Interests. Diana's address is 19010 N.W. 135th Street, Miami, FL 33054 F
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
