Determine danny and mary taxable income

Assignment Help Accounting Basics
Reference no: EM13137139

Your firm has clients named Danny and Mary. They are married and have two dependent children. They also fully support Mary's mother, who lives with them and has no income. Their 2010 tax and other related information is as follows:

Total salaries - $110,000
Bank account interest income - $3,500
Municipal bond interest income - $1,500
Rent income - $7,000
Rent expenses - $9,000
Value of employer-provided medical insurance - $5,500
Value of premiums for $50,000 of group term life insurance provided by employer - $500
Share of partnership income - $30,000
Partnership distribution - $10,000
Dividend income from ABC stock - $2,000
Loan from Danny's parents - $5,000
Gift from Danny's parents - $15,000
Total itemized deductions - $16,000

Determine Danny and Mary's taxable income.

Reference no: EM13137139

Questions Cloud

Formula to reduce the tax liability : A non profit company sells a pair of shoe that has a cost of $2.00 for the price of $102.00. The gross profit is 100%. The tax libility is 37%. What is the formula to reduce the tax liability to 0%
What are the combined total department costs : What are the combined total department costs for the producing departments after allocating the service department costs?
Determine the magnitude and direction : The direction of the forces are 0,-30 and +120 degrees from the positive X axis. Determine the magnitude and direction of the resultant force.
How person-s mood-personality influence interpretting event : How this event is interpreted? How might a person's mood, personality, or situation influence how he or she interprets this event?
Determine danny and mary taxable income : Your firm has clients named Danny and Mary. They are married and have two dependent children. They also fully support Mary's mother, who lives with them and has no income.
Amount of interest and expense for the year : Interest computed on the average accumulated expenditures for the warehouse construction was $50,000. What amount of interest should Liddy expense for the year?
Importance of intelligence gathering and analysis : What connotes and intelligence "success" or "failure?" Explain why and cite examples of each. What role does (and should) "politics" play in intelligence collection and analysis?
Explain an ideal vapor-compression refrigeration cycle : An ideal vapor-compression refrigeration cycle uses R-134a as the working fluid in an air-conditioning system. The refrigerant enters the compressor as a saturated vapor at 40 °F
Contemporary family has increasingly become a dual-earner : The contemporary family has increasingly become a dual-earner family. Traditionally, women tended to domestic chores and men earned an income. This model is less and less prevalent. Explain what is happening to the family's traditional division of re..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Regulation and uniform cpa examination

Review the educational and experience requirements to sit for the Uniform CPA Examination published by the Board of Accountancy for the State in which you intent to pursue licensure, in addition to licensure and continuing professional education r..

  Which is not usually a factor in your decision

When making a short term investment decision which of the following is not usually a factor in your decision?

  What information do you give to the client

When you request the additional information from the client, she tells you that she has no more documentation and that is all you can be given.

  Determining generally accepted accounting principles

Generally Accepted Accounting Principles (GAAP) is based on accrual accounting. Define and describe accrual accounting and provide examples

  Pros and cons of implementing ifrs in us

Prepare a proposal for what consulting services SLL should offer and to whom, inlcuding current auditing clients, other clients, or both.

  Fixed costs amount

XYZ Company's sales are $750,000 with operating profits of $130,000. If the contribution margin ratio is 40%, what did the fixed costs amount to?

  Loss contingency accrued in a company financial statements

A loss contingency shoulf be accrued in a company's financial statements only if the likelihood that a liability has been incurred is:

  Which method is more useful for internal decision making

What are the differences between variable and absorption costing? Why is variable costing not allowed for GAAP reporting? Which method is more useful for internal decision making? Why? As a manager, which would you prefer? Why?

  Determining annual amount of payroll and purchasing costs

Using the activity base info in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, COmmercial, and Government contract divisions from payroll and purchasing services.

  Compute the current price of the bonds

Barry's Steroids Comapny has $1,000 par value bonds outstanding at 12 percent interest. The bonds will mature in 50 years. Compute the current price of the bonds if the percent yield to maturity is:

  Show a profit that is above the planned level

If I can reduce my costs by $40,000 during this last quarter, my division will show a profit that is 10% above the planned level, and I will receive a bonus of $10,000.

  Government and nonprofit accounting

Some, but not all, contributions of goods and services are given accounting recognition. In each of the following scenarios, an organization receives a contribution in kind. Prepare journal entries, as necessary, to give them accounting recognitio..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd