Reference no: EM132666186
Problem - Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2016. Alfred and Beulah will file a joint return for 2018. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorced from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2018. In addition, in January 2018, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2018 is $150,000. He is an executive working for Cherry, Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives a salary of $42,000 in 2018. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah had interest income of $500. They receive a $1,900 refund on their 2017 state income taxes. They itemized deductions on their 2017 Federal income tax return (total of $15,000). Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2018. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Both spouses had health insurance for all months of 2018 and do not want to contribute to the Presidential Election Campaign. Compute the Olds' net tax payable (or refund due) for 2018. Suggested software: ProConnect Tax Online.
|
What amount does Stephen include in his gross income
: Stephen also receives a $25,000 scholarship that pays for his tuition, fees, and books. What amount does Stephen include in his gross income
|
|
Determine the yield to maturity
: The ?10-year ?$1,000 par bonds of Vail Inc. pay 12 percent interest. The? market's required yield to maturity on a? comparable-risk bond is 9 percent. The curre
|
|
What is the amount of the total relevant cost of operating
: The Enhanced Products Division of Forrest Industries,What is the amount of the total relevant cost of operating the existing equipment?
|
|
What is the rate of return on the fund
: If the gross return on assets is 15% and the total expense ratio is 3% of the year end value, what is the rate of return on the fund?
|
|
Compute the Olds net tax payable
: Both spouses had health insurance for all months of 2018 and do not want to contribute to the Presidential Election Campaign. Compute the Olds' net tax payable
|
|
Explain impact on the profits of the investment bank
: If interest rates rise by 0.25 percent, overnight, what will be the impact on the profits of the investment bank?
|
|
Prepare the wage entries for the payment of interest
: On January 1, 2022, Prepare the wage entries for the payment of interest and the amortization of the discount or premium during 2022
|
|
Prepare the payroll entry to record the bond issue
: Prepare the payroll entry to record the bond issue on 1/1/2022. On January 1, 2022, the Martines company sold $ 5,000,000 in 10-year bonds at 9%.
|
|
How much do you need in your account at the beginning
: 1. You want to be able to withdraw $30,000 each year for 25 years. Your account earns 8% interest.
|