Problem 1 (15 points) Troy and Abby Henderson have two dependent children who live with them...

  

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Problem 1 (15 points) Troy and Abby Henderson have two dependent children who live with them in Elburn. Troy manages a telemarketing firm from home; Abby is the managing director of a marketing consulting firm in the western suburbs of Chicago (the firm is a single-member LLC that reports its income as a sole proprietorship). Troy and Abby provide you with the following information: 1. Troy had wages (reported on Form W-2) of $94,000. In addition, Troy's employer provided health, dental, and vision insurance for Troy and his family (Troy's employer pays 75% of the insurance cost; Troy's contribution was $3,200). Abby's business reported net income of $82,000 on Schedule C (Form 1040). Based on her proporietorship data, Abby's self-employment tax liability for 2019, reported on Schedule SE (Form 1040), is $11,586. 2. 3. 4. 5. The Hendersons sold 500 shares of Geneva Investments, Inc. on June 17, 2019 for $9,800. The shares were purchased on February 21, 2011 for $14,100. In October, Troy received an inheritance of $30,000 from his great aunt's estate. Required: Based on this information, compute the Henderson's adjusted gross income on a blank sheet of paper. Your answer should clearly identify each of the following items: The Hendersons received $485 of interest income ($375 from Chase Bank and $110 from a variety of state and municipal bonds) and $2,670 of dividend income from a variety of stocks. 6. 1. 2. 3. 4. 5. Income, Exclusions from income, Gross income, Any deductions "for" adjusted gross income, and Adjusted gross income. Problem 1 (15 points) Troy and Abby Henderson have two dependent children who live with them in Elburn. Troy manages a telemarketing firm from home; Abby is the managing director of a marketing consulting firm in the western suburbs of Chicago (the firm is a single-member LLC that reports its income as a sole proprietorship). Troy and Abby provide you with the following information: 1. Troy had wages (reported on Form W-2) of $94,000. In addition, Troy's employer provided health, dental, and vision insurance for Troy and his family (Troy's employer pays 75% of the insurance cost; Troy's contribution was $3,200). Abby's business reported net income of $82,000 on Schedule C (Form 1040). Based on her proporietorship data, Abby's self-employment tax liability for 2019, reported on Schedule SE (Form 1040), is $11,586. 2. 3. 4. 5. The Hendersons sold 500 shares of Geneva Investments, Inc. on June 17, 2019 for $9,800. The shares were purchased on February 21, 2011 for $14,100. In October, Troy received an inheritance of $30,000 from his great aunt's estate. Required: Based on this information, compute the Henderson's adjusted gross income on a blank sheet of paper. Your answer should clearly identify each of the following items: The Hendersons received $485 of interest income ($375 from Chase Bank and $110 from a variety of state and municipal bonds) and $2,670 of dividend income from a variety of stocks. 6. 1. 2. 3. 4. 5. Income, Exclusions from income, Gross income, Any deductions "for" adjusted gross income, and Adjusted gross income.

Answer rating: 100% (QA)

ANSWER 1 Income Troys wages 94000 Abbys business income 82000 Interest i... View the full answer