Compute janice morgan of federal income tax payable

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Reference no: EM13165343

Janice Morgan, age 32, is single and has no dependents. She is a freelance writer. In January, 2011, Janice opened her own office located at 2751 Waldham Road, Pleasantville, CA 90029. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasantville, CA 90029. Her Social Security number is 123-45-6789. Janice desires to contribute to the Presidential Election Campaign Fund.

Income from sale of articles $105,000
Rent 16,500
Utilities 7,900
Supplies 1,800
Insurance 5,000
Travel (including meals of $1,200) 3,500
Janice purchased and placed in service the following fixed assets for her business
$ Furniture and fixtures (new) costing $17,000 on January 10, 2011
$ Computer equipment (new) costing $40,000 on July 28, 2011.
Janice did not elect immediate expensing under S 179. She elected not to take additional first year depreciation.
Janice=s itemized deductions are as follows:
State income tax $3,000
Home mortgage interest paid to First Bank 6,000
Property taxes on home 1,500
Charitable contributions 1,200

Janice did not keep a record of the sales tax she paid. The amount from the sales tax table is $437.

Janice has interest income of $5,000 on certificates of deposit at Second Bank. Janice makes estimated tax payments of $17,000 for 2011.

Compute Janice Morgan 2011 Federal income tax payable

Reference no: EM13165343

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