Acct 553 Week 1 Assignment

Topics: Taxation in the United States, Tax, Money Pages: 3 (562 words) Published: August 17, 2013
Homework Assignment #1

3-31
Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $11,950 and four exemptions. Assuming an adjusted gross income of $40,000.00 what is their taxable income for 2012?

Adjusted Gross Income = $40,000.00
Less: Itemized Deductions of $12,250.00
Less: Personal Exemptions of $ 4($3,700.00) =$14,800.00
Taxable Income = $12,950.00

3-32
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.

Adjusted Gross Income = $70,000.00
Less: Itemized Deductions of $9,000.00
Less: Personal Exemptions of $ 3($3,700.00) =$11,100.00
Taxable Income = $49,900.00

3-36
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.

Gross Income = $3,000.00
Less: Standard Deduction = $1,000.00 + $300.00 = $1,300.00

Total Taxable Income = $1,700.00

13-55
Mr. Z, a non-dealer, sold assets on an installment plan. Determine Mr. Z's gross income for 2012. Relevant data include:

In order to determine the Gross Income, we must first determine the gross profit percentage which = Gross profit/contract price. A. 50,000/200,000 = .25
B. 81,000/300,000 = .27
C. 96,000/400,000 = .24

Now we must take the total collected for each year and multiply it by the percentage to determine the gross income for monies collected. $25,000.00(.25) = $6,250.00 + $80,000.00 (.27) =$21,600.00 + $125,000.00(.24) = $30,000.00

Total Gross Income for 2012 = $57,850.00

13-69.
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...
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