Reference no: EM131975162
Problem
This is the second part of a six part problem that will allow you to prepare the 2015 tax return for Laurie and Lynn Norris. As with the previous parts, this part of the problem will ask you to prepare a portion of their tax return. You should complete the appropriate portion of each form or schedule indicated in the instructions. The following basic information is provided for preparing their 2015 tax return:
Lynn's brother Joey dies in January. Lynn receives Joey's 2012 Corvette (fair market value $32,000), 200 shares of Goober Corporation stock (fair market value $2,000), and his brother's home (fair market value $125,000) in settlement of the estate.
Lynn receives a $100 dividend on the Goober stock in June. In October, Goober declared a 25% stock dividend when the stock is selling for $15. Lynn receives 50 additional shares of stock in November. Lynn sells the 50 dividend shares on December 10 for $700.
On December 22, Lynn sells Joey's home for $128,000.
Laurie works for Fox Corporation as a drilling superintendant. Her annual salary is $96,000. In 2015, she receives a $12,000 bonus. Fox withholds $16,200 of her salary and bonus for federal taxes. Laurie receives the following employment related benefits during 2015:
Fox provides all employees with medical insurance (Laurie's insurance cost $8,600) and group-term life insurance at twice their annual salary up to a maximum coverage of $200,000 (Laurie's premiums cost $560).
Fox has a qualified pension plan that covers all employees. Under the plan, Fox matches contributions to the plan up to 5% of the employee's annual salary. Laurie makes the maximum allowable contribution, which is matched by Fox. Laurie pays $2,000 into the company's flexible benefits plan.
Laurie spends $2,200 on medical and dental expenses not covered by insurance. She receives $2,000 from the flexible benefits plan for these expenses.
Lynn is injured when a motorist hits him while he is riding his bicycle. Lynn sues the driver and receives $3,500 for his medical expenses, $2,000 for pain and suffering, and $1,000 in punitive damages.
Required: Based on the information provided above, only fill out the appropriate portions of Form 1040, Form 1040 Schedule B, and Form 1040 Schedule D.
|
How much are each of the given rights worth
: A firm currently has 20,000,000 shares with a price of $40 per share. They want to issue another 2,000,000 shares so they give each shareholder the right.
|
|
How much money will the company make or lose on the order
: During the off season, a special order for 3,000 chairs has come in from oversees government agency. How much money will the company make or lose on this order?
|
|
What is the chance of an individual winning
: What is the chance of an individual winning more than $200 dollar in 2 hours playing the type A slot machine?
|
|
Compute the companys equity as of the beginning
: During the year, the company paid dividends of $90,000 to stockholders. Compute the company's equity as of the beginning of this year.
|
|
Fill out the appropriate portions of form 1040
: Based on the information provided above, only fill out the appropriate portions of Form 1040, Form 1040 Schedule B, and Form 1040 Schedule D.
|
|
What is the most the firm can pay for the project
: The firm's D/E ratio is 0.5. What is the most the firm can pay for the project and still earn its required return? Maximum the firm can pay $
|
|
Find the values of the absolute and relative errors
: One of the authors received a credit card bill for $3,470, but it included a charge of $1,706 that was not valid. Find the values of the absolute and relative.
|
|
Make a histogram for the r-distribution probabilities
: Let r be the number of claims made by males under age 25. Make a histogram for the r-distribution probabilities.
|
|
What is the implied variable cost rate for scanner a
: Seattle Radiology Group plans to invest in a new CT scanner. What is the implied variable cost rate (variable cost per scan) for Scanner A?
|