QUESTION 3 (15 points) Cyclops and Storm Marvel got married 10 years ago and have a 5-year-old son Magneto. Storm's daughter from a previous relationship, Mystique also lives with them. Mystique is 22 years old, unemployed and currently a full time student at Thanos University. In 2019, Cyclops worked as a computer programmer and analyst earning a salary of $287.600, and Storm worked part-time as a receptionist for a law firm earning a salary of $49,000. Cyclops also does some Web design work on the side and reported revenues of S32,500 and associated expenses of $9,750. Storm runs a craft business from their home. Her craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Storm spends considerable time and effort on her craft business and it has been consistently profitable over the years. Storm also had $7.900 of gambling losses from a girl's weekend in Asgard City. The Marvels received a 5500 refund of their state income taxes. The Marvels have always itemized their deductions and their itemired deductions were well over the standard deduction amount last year (2018). The Marvels reported the following additional information during the year (2019): State income taxes of $4,950 paid. Federal tax withholding of $28,000. Alimony payments to Cyclops's former wife $12.000 (divorced in 2014). Child support payments for Cyclops's child with his former wife S1 1.100 S12.200 of real property taxes $15.500 interest on their hom nortgage (acquisition debt of $600,000) $5,000 interest on a $90,000 home equity loan. They used the loan to pay for family vacation and new $4,350 interest on loans to pay Mystique's tuition English (United S ) Droon search AC 5170 7120 take home 2 WINTER 2020 - Last Modified: Tue 1:13 PM Layout References mohamed Mustapha Mailings Review View Help Draw Design 2 - A A A A XA2 A She 2 1 3 Aalbcc AaBbCcDc Aabe di Boccod AaBCC can 1. Normal No Se Heading Heading Suite find Replace D Select Dieta Paragraph Editing State income taxes of $4,950 paid Federal tax withholding of $28.000 Alimony payments to Cyclops's former wife 512.000 (divorced in 2014). Child support payments for Cyclops's child with his former wife $11.100 S12.200 of real property taxes. $15.500 interest on their hom nortgage acquisition debt of 5600,000) $5,000 interest on a $90,000 home-equity loan. They used the loan to pay for family Vacation and new 54.350 interest on loans to pay Mystique's tuition $32.550 cash charitable contributions to qualified charities Donation of used furniture to Guardians of the Galaxy The formere had a fair market value of $900 and cost $3.000 Automobile licenses (based on value) 5410 State sales tax paid $3.150 Interest on Daredevil credit card $2.980 Penalty for early withdrawal of certificate of deposit $920 Cost of Storm's craft supplies 514270 Postage for mailing crafts $1.245 . Travel and lodging for craft shows 51 430 . Storm's craft sales $45.050 . Interest from certificate of deposit $4.650 Interest from Treasury bond funds 5927 Interest from municipal bond funds $1920 Storm's gambling winnings 54,900 egiahnited earch o e M L 2.9 3 %) ENS 100 PM TOUPE 60MM SE w Design A A A m2 Malings onal multa 30 - Review - AC51707220 References E Layout A Meditat View Help A CO O o Comments a shuro DE Gross Income FOR AGE dedectis AGI FROM AGI dedectas Standard Deduction Taxable lacom Tax Liability Prepayments Amount Due or Refund 5 ORIEM - L VE D OU Busionen 1000000 UUR Draw Design A A A XX A-P- A Layout A AC 5170 7120 take home 2 WINTER 2020 - Last Modified 1:13 PM mohamed Mustapha References Malings Review View Help E Pand **215 Abbc ABCD A - O C AB e Replace E S E - Normal 1 No Space Heading Harding Subtitles Select- TREATMENT ere to search ENOU WONDO QUESTION 3 (15 points) Cyclops and Storm Marvel got married 10 years ago and have a 5-year-old son Magneto. Storm's daughter from a previous relationship, Mystique also lives with them. Mystique is 22 years old, unemployed and currently a full time student at Thanos University. In 2019, Cyclops worked as a computer programmer and analyst earning a salary of $287.600, and Storm worked part-time as a receptionist for a law firm earning a salary of $49,000. Cyclops also does some Web design work on the side and reported revenues of S32,500 and associated expenses of $9,750. Storm runs a craft business from their home. Her craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Storm spends considerable time and effort on her craft business and it has been consistently profitable over the years. Storm also had $7.900 of gambling losses from a girl's weekend in Asgard City. The Marvels received a 5500 refund of their state income taxes. The Marvels have always itemized their deductions and their itemired deductions were well over the standard deduction amount last year (2018). The Marvels reported the following additional information during the year (2019): State income taxes of $4,950 paid. Federal tax withholding of $28,000. Alimony payments to Cyclops's former wife $12.000 (divorced in 2014). Child support payments for Cyclops's child with his former wife S1 1.100 S12.200 of real property taxes $15.500 interest on their hom nortgage (acquisition debt of $600,000) $5,000 interest on a $90,000 home equity loan. They used the loan to pay for family vacation and new $4,350 interest on loans to pay Mystique's tuition English (United S ) Droon search AC 5170 7120 take home 2 WINTER 2020 - Last Modified: Tue 1:13 PM Layout References mohamed Mustapha Mailings Review View Help Draw Design 2 - A A A A XA2 A She 2 1 3 Aalbcc AaBbCcDc Aabe di Boccod AaBCC can 1. Normal No Se Heading Heading Suite find Replace D Select Dieta Paragraph Editing State income taxes of $4,950 paid Federal tax withholding of $28.000 Alimony payments to Cyclops's former wife 512.000 (divorced in 2014). Child support payments for Cyclops's child with his former wife $11.100 S12.200 of real property taxes. $15.500 interest on their hom nortgage acquisition debt of 5600,000) $5,000 interest on a $90,000 home-equity loan. They used the loan to pay for family Vacation and new 54.350 interest on loans to pay Mystique's tuition $32.550 cash charitable contributions to qualified charities Donation of used furniture to Guardians of the Galaxy The formere had a fair market value of $900 and cost $3.000 Automobile licenses (based on value) 5410 State sales tax paid $3.150 Interest on Daredevil credit card $2.980 Penalty for early withdrawal of certificate of deposit $920 Cost of Storm's craft supplies 514270 Postage for mailing crafts $1.245 . Travel and lodging for craft shows 51 430 . Storm's craft sales $45.050 . Interest from certificate of deposit $4.650 Interest from Treasury bond funds 5927 Interest from municipal bond funds $1920 Storm's gambling winnings 54,900 egiahnited earch o e M L 2.9 3 %) ENS 100 PM TOUPE 60MM SE w Design A A A m2 Malings onal multa 30 - Review - AC51707220 References E Layout A Meditat View Help A CO O o Comments a shuro DE Gross Income FOR AGE dedectis AGI FROM AGI dedectas Standard Deduction Taxable lacom Tax Liability Prepayments Amount Due or Refund 5 ORIEM - L VE D OU Busionen 1000000 UUR Draw Design A A A XX A-P- A Layout A AC 5170 7120 take home 2 WINTER 2020 - Last Modified 1:13 PM mohamed Mustapha References Malings Review View Help E Pand **215 Abbc ABCD A - O C AB e Replace E S E - Normal 1 No Space Heading Harding Subtitles Select- TREATMENT ere to search ENOU WONDO