Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

John E. Owens and Sally A. Owens, each age 42, married on September 7, 2011. John and Sally will file a joint return for 2011.

John was divorced from Joyce in March 2010. Under the divorce agreement, John is to pay Joyce $ 1,000 per month for next 10 years or until Joyce's death, whichever occurs first. John pays Joyce $ 12,000 in 2011. In addition, in January 2011, John pays Joyce $ 50,000, which is designated as being for her share of the marital property. Also, John is responsible for all prior years' income taxes.

John's total wage compensation for 2011 is $ 190,000. His employer withheld $ 12,000 for Federal income taxes and $ 3,400 for state income taxes. The following amounts were withheld for FICA taxes: $ 4,485.60 ($ 106,800 X 4.2%) for Social Security and $ 2,755 ($ 190,000 X 1.45%) for Medicare.

Sally recently graduated from law school and is employed by Legal Aid Society, Inc., as a public defender. She received a salary of $ 40,000 in 2011. Her employer withheld $ 5,700 for Federal income taxes and $ 2,300 for state income taxes. The following amounts were withheld for FICA taxes: $ 1,680.00 ( $ 40,000 X 4.2%) for Social Security and $ 850 ($ 40,000 X 1.45%) for Medicare.

Sally has $ 1,500 in dividend on Yellow Corporation stock she inherited. Sally receives an $ 850 refund of 2010 state income taxes. She used the standard deduction on her 2010 Federal income tax return. Alfred receives $ 1,300 refund on his 2010 state income taxes. He itemized deduction on his 2010 Federal income tax return. John and Sally pay $ 4,800 interest and $ 1,450 property taxes on their personal residence in 2011. Their charitable contributions total $ 2,600 (all to their church).

REQUIRED:

Compute John and Sally's taxable income for 2011.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M945846

Have any Question? 


Related Questions in Accounting Basics

Waupaca company establishes a 480 petty cash fund on

Waupaca Company establishes a $480 petty cash fund on September 9. On September 30, the fund shows $211 in cash along with receipts for the following expenditures: transportation-in, $51; postage expenses, $65; and misce ...

Assignment the apportionmentyou are a census officer in a

Assignment: The Apportionment You are a census officer in a newly democratic nation and you have been charged with using the census data from the table below to determine how 100 congressional seats should be divided amo ...

Please see the list of stock from a virtual game that

Please see the list of stock from a virtual game that student invested during the period Sep 2016- Dec 2016. The returns are shown as well. Please use this information to write a report 2-4 pages about the project. Your ...

Assignmentas my town is very small and i was unable to find

Assignment As my town is very small and I was unable to find the CAFR, but I was able to find reports for my nearest city (and the one I work in), Concord, NH, for the fiscal year ending June 30, 2015. One thing that I f ...

1-15 multiple choice each multiple choice has only one

1-15. Multiple Choice Each multiple choice has only one correct answer. 1. Which of the following aspects of a company could be considered a critical success factor, given the appropriate business environment? A) cutting ...

Maher inc reported income from continuing operations before

Maher Inc. reported income from continuing operations before taxes during2014 of $790,000. $790,000 Additional transactions occurring in 2014 but not considered in the $790,000 are as follows. 1. The corporation experien ...

Del gato clinic deposits all cash receipts on the day when

Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows a(n) $14,287 debit balance. Del Gato ...

Auerbach enterprisescomplete case 3a auerbach

Auerbach Enterprises Complete: Case 3A (Auerbach Enterprises). Auerbach Enterprises manufactures air conditioners for automobiles and trucks manufactured throughout North America. The company designs its products with fl ...

Careers in accountingaccounting is the study of how

Careers in Accounting Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

Vaughn company reports the following financial information

Vaughn Company reports the following financial information before adjustments.   Dr. Cr. Accounts Receivable $155,400 Allowance for Doubtful Accounts   $3,890 Sales Revenue (all on credit)   800,700 Sales Returns and All ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen