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

Presentation 2- separate presentations but use same

Presentation (2- Separate Presentations but use same Publicly Traded Company) ** Please use references as needed ** Create a 10- to 12-slide presentation. Choose a publicly traded company. Using the most recent SEC 10-k ...

Transactions and fasb standards1 the new city college

Transactions and FASB Standards 1. The New City College reported deferred revenues of $612,000 as of July 1, 2014, the first day of its fiscal year. Record the following transactions related to student tuition and fees a ...

Question 1bringing account balances up to date before

Question 1 Bringing account balances up to date before preparing financial reports is called A. posting. B. adjusting. C. journalizing. D. analyzing. Question 2 The entry to record the expiration of part of the prepaid r ...

Accounting questions1 if cash is 2345 in 20x2 and 3671 in

Accounting Questions 1. If Cash is $2,345 in 20X2 and $3,671 in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2? A. 56.55%******* B. (56.55%) C. 36.12% D. (36.12%) 2. Gross profit by department a ...

Modified accrual accounting and general fund itemscomplete

Modified Accrual Accounting and General Fund Items Complete the following questions based on the Chapter 4 material: • Outline revenue recognition criteria under modified accrual accounting. Include specific requirements ...

Write a paper about internal controlsassignmentcontent

Write a paper about internal controls Assignment Content Page - Introduction - Definition of internal controls(Books) - Components of internal control system(Books) - Examples of internal controls(Books or research paper ...

1 many firms are relying on cloud computing also known as

1. Many firms are relying on cloud computing, also known as "the cloud," to perform key business functions. By moving transactional processing to the cloud, firms are exposing themselves to additional attacks as well as ...

Dq1respond to the ethics discussion case at the end of

DQ1 Respond to the Ethics Discussion Case at the end of chapter 5 in the textbook. Dan owns a successful sports bar in downtown Providence. The state is considering legislation that would restrict the sale of alcohol in ...

Review the short list of account balances from data below

Review the short list of account balances from data below. From the account balances, generate an income statement, a statement of owner's equity and a balance sheet for a hypothetical small business. The adjusted trial ...

1 which of the following would definitely improve both

1. Which of the following would definitely improve both gross profit as reported in the Income Statement and gross profit margin (assuming cost price per unit stays the same)? A. Selling more units at a higher selling pr ...

  • 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