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William sold Section 1245 property for $25,000 in 2015. The property cost $37,000 when it was purchased 5 years ago. The depreciation claimed on the property was $17,000.

If an amount is zero, enter "0".

a. Calculate the adjusted basis of the property. $

b. Calculate the recomputed basis of the property. $

c. Calculate the amount of ordinary income under Section 1245. $

d. Calculate the Section 1231 gain. $

Sally hires a maid to work in her home for $260 per month. The maid is 25 years old and not related to Sally. During 2015, the maid worked 10 months for Sally.

Do not round immediate computations and round your final answers to two decimal places.

a. What is the amount of Social Security tax Sally must pay as the maid's employer? $

b. What is the amount of Medicare tax Sally must pay as the maid's employer?

Sally's employer's Medicare tax: $

c. What is the amount of Social Security and Medicare tax which must be withheld from the maid's wages?

Sally should withhold for Social Security and Medicare tax of: $

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M91958303

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