This is the second part of a six part problem that will allow you to prepare the 2014 tax return
• Lynn's brother Joey dies in January. Lynn receives Joey's 2011 Corvette (fair market value $32,000), 200 shares of Goober Corporation stock (fair market value $2,000), and his brother's home (fair market value S 125,000) in settlement of the estate.
• Lynn receives a $100 dividend on the Goober stock in June. In October, Goober declared a 25% stock dividend when the stock is selling for $15. Lynn receives 50 additional shares of stock in November. Lynn sells the 50 dividend shares on December 10 for $700.
• On December 22, Lynn sells Joey's home for $ 128,000
• Laurie works for Fox Corporation as a drilling superintendant. Her annual salary is $96,000. In 2014, she receives a $12,000 bonus. Fox withholds $16,200 of her salary and bonus for federal taxes. Laurie receives the following employment related benefits during 2014:
Fox provides all employees with medical insurance (Laurie's insurance cost $8,600) and group-term life insurance at twice their annual salary up to a maximum coverage of $200,000 (Laurie's premiums cost $560).
Fox has a qualified pension plan that covers all employees. Under the plan, Fox matches contributions to the plan up to 5% of the employee's annual salary. Laurie makes the maximum allowable contribution, which is matched by Fox. Laurie pays $2,000 into the company's flexible benefits plan. Laurie spends $2,200 on medical and dental expenses not covered by insurance. She receives $2,000 from the flexible benefits plan for these expenses.
• Lynn is injured when a motorist hits him while he is riding his bicycle. Lynn sues the driver and receives $3,500 for his medical expenses, $2,000 for pain and suffering, and $1,000 in punitive damages.
Required: Based on the information provided above, only fill out the appropriate portions of Form 1040, Form 1040 Schedule B, and Form 1040 Schedule D.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Question Posted: July 14, 2016 04:27:50