Reference no: EM133135879
Question - Other Income - Mrs. Vick, a 40-year-old cash basis taxpayer, earned $45,000 as a teacher and $5,000 as a part-time, self-employed real estate agent in Year 5. Mr. Vick, who died on July 1, Year 5, had been permanently disabled on his job and collected state disability benefits until his death. For all of Year 5 the Vicks' residence was the principal home of both their 11-year-old daughter, Joan Vick, and Mrs. Vick's unmarried cousin, Fran Phillips, who had no income in that year. During Year 5, Joan received $200 a month in survivor Social Security benefits that began on August 1, Year 5, and will continue at least until her 18th birthday. In Year 5, Mrs. Vick provided over one-half of the support for Joan and Fran, both of whom were U.S. citizens. Mrs. Vick did not remarry. Mr. and Mrs. Vick received the following in Year 5:
Earned income
|
$50,000
|
State disability benefits (workmen's comp)
|
1,500
|
Interest on:
|
Refund from amended tax return
|
50
|
Savings account and certificates of deposit
|
350
|
Municipal bonds
|
100
|
Gift
|
3,000
|
Pension benefits
|
2,000
|
Jury duty pay
|
200
|
Gambling winnings
|
450
|
Life insurance proceeds
|
5,000
|
Additional Information
Mrs. Vick received the $3,000 cash gift from her uncle.
Mrs. Vick received the pension distributions from a qualified pension plan, paid for exclusively by her husband's employer.
Mrs. Vick had $100 in gambling losses.
Mrs. Vick was the beneficiary of the life insurance policy on her husband's life. She received a lump-sum distribution. The Vicks had paid $500 in premiums.
Mrs. Vick received Mr. Vick's accrued vacation pay of $500 in Year 6.
Mrs. Vick did not itemize deductions on her Form 1040 for Year 4.
Mrs. Vick does not intend to itemize deductions on her Form 1040 for Year 5.
Mrs. Vick had a total of $6,125 in federal tax withheld in Year 5.
The Vicks did not qualify for a federal or state tax refund in Year 4.
Required - Determine the amount of income that needs to be reported for each of the following income sources.
What is the taxable amount of Mr. Vick's state disability benefits that should be included in adjusted gross income (AGI)?
What is the taxable amount of the gift that should be included in AGI?
What is the taxable amount of the life insurance proceeds that should be included in AGI?
What is Holly direct materials quantity variance for sprigs
: Holly Industries manufactures artificial holiday wreaths. What is Holly's direct materials quantity variance for sprigs of holly berries for August
|
Calculate the total depreciation deduction
: Assuming that Helen does not use additional first-year depreciation, calculate the total depreciation deduction that she can take on the vehicle for 2021
|
What two major challenges faced by health care organizations
: Question - What are two major challenges faced by health care organizations, and what are these organizations doing to address these concerns
|
Explain the elements of the fraud triangle
: Question - Explain the elements of the Fraud Triangle, and explain which element is most likely to explain a corporate officer's decision to cut corners
|
Determine the amount of income that needs to be reported
: Mrs. Vick does not intend to itemize deductions on her Form 1040 for Year 5. Determine the amount of income that needs to be reported
|
HSC220 Society, Culture and Health Assignment
: HSC220 Society, Culture and Health Assignment Help and Solution, Charles Darwin University - Assessment Writing Service
|
How much is the gain on debt restructuring
: Annual interest of 10% of the new principal is to be paid on December 31, 2021 and December 31, 2022. How much is the gain on debt restructuring
|
Calculate the residual income for the proposed new line
: Koch has just received a proposal to invest $1,990,000 in a new line of energy drinks. Calculate the residual income for the proposed new line
|
How hiring interns can help a employer to save money
: How hiring interns can help a employer to save money by paying less. Explain with examples
|