Whittenburg Gerald E., Altus-Buller Martha. Income Tax Fundamentals
Подождите немного. Документ загружается.
During 2010, Ken’s aunt died. The aunt, in her will, left Ken $15,000 in cash. Ken
deposited this money in the SMSU Credit Union account.
Required: Complete the Hair’s federal tax return for 2010. Use Form 1040A on pages
2-43 through 2-45 and Schedule M on page 2-46. Make realistic assumptions about any
missing data.
2A. Ray and Maria Gomez have been married 3 years. They live at 1610 Quince Ave.,
McAllen, TX 78701. Ray works for Palm Oil Corporation and Maria works for the
City of McAllen. Maria’s Social Security number is 444-65-9912 and Ray’s is 469-
21-5523. Ray’s and Maria’s earnings and income tax withheld for 2010 are:
Ray: Earnings from Palm Oil Corp. $29,420
Federal income tax withheld 4,320
State income tax withheld 0
Maria: Earnings from the City of McAllen $31,300
Federal income tax withheld 5,300
State income tax withheld 0
Ray and Maria have interest income of $577 from a savings account at McAllen
State Bank. In addition, they own U.S. S avings bonds (Series EE). The bonds had a
value of $10,000 on January 1, 2010, and their value is $10,700 on December 31,
2010. They have not made an election with respect to these bonds.
Ray has an ex-wife named Judy Gomez. Pursuant to their divorce decree, Ray pays
her $400 per month in alimony. All payments were made on time in 2010. Judy’s Social
Security number is 566-74-8765.
During 2010, Ray was in the hospital for a successful operation. His health insur-
ance company reimbursed Ray $4,732 for all of his hospital and doctor bills.
In June of 2010, Maria’s father died. Under a life insurance policy owned and paid
for by her father, Maria was paid death benefits of $25,000.
Maria bought a Texas lottery ticket on impulse during 2010. Her ticket was lucky
and she won $3,000. The winning amount was paid to Maria in November 2010, with
no income tax withheld.
Palm Oil Corporation provides Ray with a company car to drive while he is work-
ing. The Corporation spent $5,000 to maintain this vehicle during 2010. Ray never
uses the car for personal purposes.
Required: Complete the Gomez’s federal tax return for 2010. Use Form 1040 and
Schedule M on pages 2-47 through 2-49. Make realistic assumptions about any miss-
ing data.
2B. CarlConchandMaryDuvalaremarriedandfileajointreturn.Theyliveat1234Mal-
lory Sq, Apt. 64, Key West, FL 33040. Carl works for the Key Lime Pie Company and
Mary is a homemaker after losing her job in 2009. Mary’s Social Security number is 633-
65-7912 and Carl’s is 835-21-5423. Carl’s earnings and income tax withheld for 2010 are:
Earnings from Key Lime Pie Company $67,925
Federal income tax withheld 9,726
State income tax withheld 0
Carl and Mary have interest income of $283 from a savings account at Coral Reef
State Bank.
Questions and Problems 2-41
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Carl owns stock in So uthwest Airlines. Southwest paid Carl $125 in nonqualifie d
dividends in 2010.
Mary is divorced and she pays her ex-husband (Tom Tortuga) child support. Pur-
suant to their divorce decree, Mary pays Tom $525 per month in child support. All
payments were made on time in 2010.
In June of 2010, Mary’s father gave her a cash gift of $75,000. Mary also received
unemployment compensation of $2,600 during 2010. Mary won a $1,000 prize in a
women’s club raffle in 2010. No income tax was withheld from the prize.
The Key Lime Pie Company provides Carl with a company car to drive while he is
working. The Company spent $6,475 to maintain this vehicle during 2010. Carl never
uses the car for personal purposes.
Required: Complete Carl and Mary’s federal tax return for 2010. Use Form 1040 and
Schedule M on pages 2-47 through 2-49. Make realistic assumptions about any miss-
ing data.
GROUP 4:
CUMULATIVE SOFTWARE PROBLEM
.............................................. .............................................. .
The following additional information is available for the Dr. Ivan and Irene Incisor family.
Ivan and Irene have the following investment income, in addition to that reported in
Chapter 1:
Dividends (qualified) on Big Bank stock $850
Dividends (qualified) on Big Gas Company stock 470
Dividends (nonqualified) from Mango Mutual Fund 145
Interest on Washington State Municipal Bonds 650
Interest on Big Electric Company Bonds 650
Ivan went to a local Indian casino and won $6,000 playing Keno. Ivan had no other
gambling income or loss for the year.
In February, Irene received $50,000 in life insurance proceeds from the death of her
friend Sharon.
In July, Ivan’s uncle Igor died and left him real estate (undeveloped land) worth $72,000.
Five years ago, Ivan and Irene were divorced. Ivan married Mary Molar, but that mar-
riage did not work out and they were divorced a year later. Three years ago, Ivan and Irene
were remarried. Under their divorce decree, Ivan pays Mary $13,000 per year alimony. All
payments were made on time during 2010. Mary’s Social Security number is 667-34-9224.
Bitewing Dental Clinic, Inc., pays Ivan’s dental license fees and membership dues to
dental organizations. During 2010, Bitewing paid $1,240 for such dues and fees for Ivan.
Irene was laid off from her job on January 2, 2010. For 2010, she received $3,750 in
unemployment benefits.
Ivan and his family are covered by an employer-sponsored health insurance plan at work.
Bitewing pays $700 per month premiums for Ivan and his family. During the year, Irene was
in the hospital for a few days to have her appendix removed. The bill for the surgery was
$5,100 of which the health insurance plan reimbursed Ivan the full $5,100.
Required: Combine this new information about the Incisor family with the information from
Chapter 1 and complete a revised 2010 tax return for Ivan and Irene. Be sure to save your data
input files since this case will be expanded with more tax information in later chapters.
2-42 Chapter 2
Gross Income and Exclusions
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Questions and Problems 2-43
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
2-44 Chapter 2
Gross Income and Exclusions
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Questions and Problems 2-45
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
2-46 Chapter 2
Gross Income and Exclusions
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Questions and Problems 2-47
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
2-48 Chapter 2
Gross Income and Exclusions
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Questions and Problems 2-49
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
2-50 Chapter 2
Gross Income and Exclusions
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.