computation, Taxation

"Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2010. Alfred and Beulah will file a joint return for 2011. Alfred''s Social Security number is 111-11-1111. Beulah''s Social Security number is 123-45-6789, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304.

Alfred was divorced from Sarah Old in March 2009. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah''s death, whichever occurs first. Alfred pays Sarah $15,000 in 2011. In addition, in January 2011, Alfred pays Sarah $50,000, which is designed as being for her share of the martial property. Also Alfred is responsible for all prior year''s income taxes. Sarah''s Social Security number is 123-45-6788.

Alfred''s salary for 2011 is $150,000, and his employer, Cherry, Inc. (Federal I.D. No. 98-7654321), provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The following amounts were withheld for FICA taxes: $4,486 ($106,800 × 4.2%) for Social Security and $2,175 ($150,000 × 1,45%) for Medicare.

Beulah recently graduated from law school and its employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives a salary of $40,000×4.2%) for Social Security and $580 ($40,000 × 1.45%) for Medicare.

Beulah has $2,500 in qualified dividends on Yellow Corporation stock she inherited. Alfred and Beulah receive a $1,900 refund on their 2010 state income taxes. They itemized deductions on their 2010 Federal income tax return (total = $15,000). Alfred and Beaulah pay $4,500 interest and $1,450 property taxes on their personal residence in taxes of $1,400 for which they maintain the receipts.
Posted Date: 10/13/2012 3:07:42 PM | Location : United States







Related Discussions:- computation, Assignment Help, Ask Question on computation, Get Answer, Expert's Help, computation Discussions

Write discussion on computation
Your posts are moderated
Related Questions
An unsecured short-term loan, generally issued to finance short-term liabilities, which gives the debt holders (bondholders) some level of tax choice on the earnings from their deb

Scenario: The Park family consists of the following: •Jackie O. Park; age 40; DOB: 3/23/1970; SSN: 123-45-6789; business analyst; single; unmarried •Leslie T. Park; age 16; DOB:

This year, the Coral Company Inc. generated $650,000 from its routine business operations. In addition, it sold the following assets, all of which were held for more than 12 months

evaluate the importance of the principal issue litigated in the case in question using the tax research steps outlined in Appendix A of your text.

what is the rule of travelling allowance of 2013-14

Income Tax Basis - (1) For tax purposes, concept of basis determines proper amount of gain to report when an ASSET is sold. Basis is usually the cost paid for an asset plus amounts

Ace Company has a 25 percent marginal tax rate and uses a 10% discount rate to compute NPV. The firm started a venture that will yield the following before-tax cash flows: year 0,

Investment T ax Credit A reduction in corporate income taxes is equal to a percent of the cost of a new asset in the year that the new asset is placed in the servic

Required: ? Use the following information to complete Phillip and Claire Dunphy's 2012 federal income tax return. If information is missing, use reasonable assumptions to fil