Acct553Hw1
ACCT553 Federal Taxes & Management Decisions
Week 1 Homework Questions
Allan Steynor
11th January 2013
31. Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $12,250 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2012?
Taxable Income = Adjusted gross income – Itemized deductions – Exemptions
Taxable Income = 40,000 – 12,250 – (3,800*4)
Taxable Income = 12,550
32. Compute Marie's taxable income for 2012, assuming she is single and claims two dependent children. Her adjusted gross income is $70,000, and she has itemized deductions of $9,000.
Taxable Income = Adjusted gross income – Itemized deductions – Personal Exemptions
Taxable Income = 70,000 – 9,000 – (3,800*3)
Taxable Income = 49,600
36. Compute Stanley's taxable income for 2012, assuming he has $1,000 in wages from working in a grocery store and $2,000 in interest income from some bonds he owns. Stanley, age 16, is claimed as a dependent on his parents' return.
Taxable Income = Gross income – Standard deduction
Taxable Income = (1,000+2,000) – (1,000+300)
Taxable Income = 1,700
55. Mr. Z, a nondealer, sold assets on an installment plan. Determine Mr. Z's gross income for 2012. Relevant data include: Year | Installment Sales | Gross Profit | 2012 Collections | 2010 | 200,000 | 50,000 | 25,000 | 2011 | 300,000 | 81,000 | 80,000 | 2012 | 400,000 | 96,000 | 125,000 |
Gross profit perecentage;
2010 = 50,000/200,000 = 25%
2011 = 81,000/300,000 = 27%
2012 = 96,000/400,000 = 24%
Therefore Gross Income;
2010 = 25,000*25% = 6,250
2011 = 80,000*27% = 21,600
2012 = 125,000*24% = 30,000
Gross Income = 6,250+21,600+30,000 = 57,850
69. Comprehensive Problem. Bill is a cash-basis, calendar-year taxpayer. Which of the following December items result in gross income or deductions for the current year?
a. Check received for December rent, $700, not deposited until January 4
Week 1 Homework Questions
Allan Steynor
11th January 2013
31. Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $12,250 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2012?
Taxable Income = Adjusted gross income – Itemized deductions – Exemptions
Taxable Income = 40,000 – 12,250 – (3,800*4)
Taxable Income = 12,550
32. Compute Marie's taxable income for 2012, assuming she is single and claims two dependent children. Her adjusted gross income is $70,000, and she has itemized deductions of $9,000.
Taxable Income = Adjusted gross income – Itemized deductions – Personal Exemptions
Taxable Income = 70,000 – 9,000 – (3,800*3)
Taxable Income = 49,600
36. Compute Stanley's taxable income for 2012, assuming he has $1,000 in wages from working in a grocery store and $2,000 in interest income from some bonds he owns. Stanley, age 16, is claimed as a dependent on his parents' return.
Taxable Income = Gross income – Standard deduction
Taxable Income = (1,000+2,000) – (1,000+300)
Taxable Income = 1,700
55. Mr. Z, a nondealer, sold assets on an installment plan. Determine Mr. Z's gross income for 2012. Relevant data include: Year | Installment Sales | Gross Profit | 2012 Collections | 2010 | 200,000 | 50,000 | 25,000 | 2011 | 300,000 | 81,000 | 80,000 | 2012 | 400,000 | 96,000 | 125,000 |
Gross profit perecentage;
2010 = 50,000/200,000 = 25%
2011 = 81,000/300,000 = 27%
2012 = 96,000/400,000 = 24%
Therefore Gross Income;
2010 = 25,000*25% = 6,250
2011 = 80,000*27% = 21,600
2012 = 125,000*24% = 30,000
Gross Income = 6,250+21,600+30,000 = 57,850
69. Comprehensive Problem. Bill is a cash-basis, calendar-year taxpayer. Which of the following December items result in gross income or deductions for the current year?
a. Check received for December rent, $700, not deposited until January 4