Calculate earnings, Cost Accounting

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The Smiths have two children who live with them: Sandy and Judy. Both are full-time students. Sandy is an accomplished singer and made $4,200 during the year performing at special events. Sandy deposits her earnings in a savings account intended to help cover future college expenses.

The Form W-2 Amy receives from her employer reflects wages of $35,000. Appropriate amounts for Social Security and Medicare taxes were deducted. Income tax withholdings were $1,320 for Federal and $1,056 for state. The Smiths made quarterly tax payments of $3,500 for Federal and $1,000 for state on each of the following dates: April 15, 2011; June 15, 2011; September 15, 2011; and January 15, 2012. Relevant Social Security numbers are provided below:

Name

SSN

DOB

David Smith

111-11-1111

06/06/1969

Amy Smith

123-45-6789

08/14/1970

Ron Smith

987-65-4321

03/12/1934

Sandy Smith

222-33-4444

09/13/1993

Judy Smith

555-66-7777

07/20/1991


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