Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Dan and Cheryl are married, file a joint return, and have no children. Dan, age 45, is a pharmaceutical salesman and Cheryl, age 42, is a nurse at a local hospital. Dan is paid according to commissions from sales; however, his compensation is subject to withholding of income and payroll taxes. He also maintains an office in his home as the pharmaceutical company does not have an office in Nashville and when he is not traveling, Dan operates his business from his home office. During 2016, Dan earned total compensation from his job of $125,000, on which $18,000 of federal income taxes were withheld, $7,347 of OASDI, and $1,813 of Medicare taxes. State income taxes of $4,000 were withheld. Cheryl earned a salary during 2016 of $45,400, on which federal taxes withheld were $4,000, OASDI of $2,815, and Medicare taxes of $658. During 2016, Dan and Cheryl had interest income from corporate bonds and bank accounts of $1,450 and qualified dividends from stocks of $5,950. Dan also actively trades stocks and had the following results for 2016:

LTCG $4,900
LTCL (3,200)
STCG 0
STCL (7,800)
He had no capital loss carryovers from previous years. Dan does a considerable amount of travel in connection with his job. He uses his own car and is reimbursed $0.30 per business mile. During 2016, Dan drove his car a total of 38,000 miles, of which 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the following travel expenses while away from home during the year:

Hotel $4,200
Meals $820
Entertainment of customers $1,080
Tips $100
Laundry and cleaning $150
Total $6,350

Dan was reimbursed for the travel expenses by his employer, pursuant to an accountable plan, in the amount of $5,080

Please answer the following Data?

1. Recognized capital gain or loss

2. Schedule A medical expenses after all limitations applied

3. Schedule A taxes (excluding home office, if any)

4. Total office-in-home expenses before any AGI limitation

5. Home-in-office depreciation included in total office-in-home expenses before any AGI limitation

6. Travel expenses included in employee business expenses before any AGI limitation

7. Automobile expenses, parking, and tolls included in employee business expenses before any AGI limitation

8. Schedule A charitable contribution

9. AGI

10. Taxable income

11. Tax on qualified dividends

12. Total federal income tax liability

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92595900
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Accounting Basics

Question 1 on october 1 2007 eagle company forecasts the

Question: 1. On October 1, 2007, Eagle Company forecasts the purchase of inventory from a British supplier on February 1, 2008, at a price of 100,000 British pounds. On October 1, 2007, Eagle pays $1,800 for a three-mont ...

Question - dillon corporation manufactures computer

Question - Dillon Corporation manufactures computer monitors. The company uses a job order costing system, using a plant-wide rate for allocating overhead costs. The current cost method allocates overhead on the basis of ...

Question - walton computer services inc has been in

Question - Walton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month July Aug. Sept. Oct. Nov. Dec. Service hours 116 138 260 426 314 324 Revenue $ ...

Practical and written assessment -assignment

Practical and Written Assessment - Assignment questions Baulkham Hills Shire Council owns and operates an animal shelter that performs three services: housing and finding homes for stray and unwanted animals, providing h ...

Question - the annual report can be downloaded from the

Question - The Annual Report can be downloaded from the website for Fletcher Building annual-report. Refer to Note-4 on page 65 of the Annual Report 2017, identify what are the "significant items" in 2017 and discuss the ...

Question - on december 31 2016 green company finished

Question - On December 31, 2016, Green Company finished consultation services and accepted in exchange a promissory note with a face value of $770,000, a due date of December 31, 2019, and a stated rate of 5%, with inter ...

Question - for the year ended may 31 2015 nike inc

Question - For the year ended May 31, 2015, NIKE, Inc. financial statements included the following data: NIKE, Inc. Selected financial data Revenues 30,601 Cost of sales 16,534 Gross profit 14,067 Total selling and admin ...

Question - cartagena corporation has net income of 281000

Question - Cartagena Corporation has net income of $281,000 for the year ended December 31, 2012 and common shares outstanding of 100,000. Cartagena Corporation did not issue or repurchase additional common shares during ...

Question - colorado corporation was organized on january 1

Question - Colorado Corporation was organized on January 1, 2006, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash an ...

Question - dollars for dozers entity dde has a bulldozer it

Question - Dollars for Dozers Entity (DDE) has a bulldozer it acquired 3 years ago. DDE has decided to sell the dozer in its principle market located in Tennessee. DDE has decided that the dozer needs to recondition its ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As