What advice do you give the boughs

Assignment Help Accounting Basics

Reference no: EM131894971

Problem

Ken and Mary Jane Blough, your neighbors, have asked you for advice after receiving correspondence in the mail from the IRS. You learn that the IRS is asking for documentation in support of the itemized deductions the Bloughs claimed on a recent tax return. The Bloughs tell you that their income in the year of question was $75,000. Because their record-keeping habits are poor, they felt justified in claiming itemized deductions equal to the amounts that represent the average claimed by other taxpayers in their income bracket. These averages are calculated and reported by the IRS annually based on actual returns filed in an earlier year. Accordingly, they claimed medical expenses of $7,102, taxes of $6,050, interest of $10,659, and charitable contributions of $2,693. What advice do you give the Boughs?

Reference no: EM131894971

Questions Cloud

Determine the timing and quantities for orders for tops : Develop a master schedule for this revised plan. Determine the timing and quantities for orders for tops and bases.

What is goal of payless shoesource social media presence : What is Payless shoesource approach and values associated with social media?

How much is the cost for one widget : Kentucky, Inc. purchases and sells widgets. If the company sold 7,100 units of widgets during the year, how much is the cost for one widget?

What is the economic order quantity for the material : The cost to place an order is $40. Annual demand is 3,000 pounds. Holding (or carrying cost) is 25% of the material price.

What advice do you give the boughs : Ken and Mary Jane Blough, your neighbors, have asked you for advice after receiving correspondence in the mail from the IRS. What advice do you give the Boughs?

Create a pareto chart with the given information : During the past month, a customer satisfaction survey was given to 200 customers at a local fast-food restaurant.

What is friedmans net pay : Assuming the social security rate is 6% and Medicare is 1.5% of all earnings, what is Friedman's net pay? If required, round your answer to the nearest cent.

Record the redemption of the bonds for kershaw electric : Kershaw electric sold $4,040,000, 14%, 10 year bonds on January. Record the redemption of the bonds assuming that interest for the period has already been paid.

What particular challenge do student face in online learning : Explain your preparation strategy to become a successful online student by detailing at least three steps you are taking to manage these challenges.

User Account

All Pages