Reference no: EM13335250
Ken (age 31) and Amy (age 28) Booth have brought you the following information regarding thei income, expenses, and withholding for the year.
They are unsure which of these items must be used to calculate taxable income.
Income: Ken's salary- $27,200 Amy's wages- 18,200
Insurance reimbursement for repairs from and auto accident- 500
Gift from uncle George- 2000 Interest income from Lodge state bank- 640
Federal income taxes withheld: from ken's salary- 1200 from amy's wage- 650 Amy owns and operates a computer bookstore named "The Disk Drive" The store is located at 2000 park ave, Bellview, ME 04104.
During 2012, Amy had the following income and expenses: sales of books- $320,400
Expenses: Store rental- 15000 office expense- 6000 advertising- 14000 city business license 1000 payroll 89000 payroll taxes- 9100 utilities- 8000 other- 3000
Inventory: Jan. 1- 250,000 Dec. 31- 235,000 purchases during the year- 165,000 last years amy's first year of operating the booksotre. amy and ken elected to carry forward a $5000 net operating loss from the first year of business into 2012.
This year amy loaned a friend $20,000 so that he could make an investment. instead of making the investment the friend lost all of the money in gambling and left for parts unknown. amy has no hope of ever collecting on this bad debt.
Ken won $25,000 at a casino birthday party for a friend. this amount should be reported on the other income line. The booths support kens parents Rod (social security # 124809050) and Mary (social security # 489376676) Booth who live in their own home. ken and amy live at 2345 park ave. bellview ME 04104 and their social security numbers are ken 343753456 and amy 123457890
Complete the federal tax return for 2012. use form 1040, schedule c, schedule d, and form 8949.
|
Determine the yield to maturity using the valuation formula
: Disney enterprises issued 7.55% senior debentures (bonds) on July 15, 1993, with a 100-year maturity (ie due on July 15, 2093). Suppose an investor purchased one of these bonds on July 15, 2003 for $1,050.
|
|
Determine the amount of the amortization
: Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items and illustrate the effects on the accounts and financial statements of the adjustments for each item.
|
|
Determine the take-off speed of the jet
: The thrust produced by a single jet engine, m = 6700 kg, creates a force of F = 67000 N. It takes the jet a distance of d = 0.8 km to take off. What is the take-off speed of the jet vt in m/s
|
|
What is your portfolio dollar return and percentage return
: The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year.
|
|
Reimbursement for repairs from and auto accident
: Complete the federal tax return for 2012. use form 1040, schedule c, schedule d, and form 8949.he could make an investment. instead of making the investment the friend lost all of the money in gambling and left for parts unknown
|
|
What is the effective cost of borrowing in the case
: Your firm has an average collection period of 20 days. Current practice is to factor all receivables immediately at a 1.00 percent discount.
|
|
What are the potential benefits of the domestic securities
: What are the potential benefits of the domestic securities market to those investing in the foreign securities market and what are some examples
|
|
What some of the factors that a finance manager considers
: What some of the factors that a finance manager considers in choosing an appropriate discount rate for a capital investment project
|
|
How much free cash flow did the firm generate during 2011
: Net income = $600; after-tax operating income [EBIT (1-T)] = $700; and Total assets = $2,000. Information for 2011 is as follows: Net income = $825; after-tax operating income [EBIT (1-T)] = $1,125;
|