1. Sergio is single and has a 12 year old daughter whom he supports and lives with him all year round. Sergio's salary is $135,000. His tax withholding is $19,750. His itemized deductions total $16,750. What is Sergio's tax refund or liability (how much does he owe to the IRS)? (explain answer) A. Owe $902 in tax. 3. Owe $2,042 in tax C. Have a refund of $1,070 D. Have a refund of $2,042.
1. Sergio is single and has a 12 year old daughter whom he supports and lives with him all year round. Sergio's salary is $135,000. His tax withholding is $19,750. His itemized deductions total $16,750. What is Sergio's tax refund or liability (how much does he owe to the IRS)? (explain answer) A. Owe $902 in tax. 3. Owe $2,042 in tax C. Have a refund of $1,070 D. Have a refund of $2,042.
Chapter10: Deductions And Losses: Certain Itemized Deductions
Section: Chapter Questions
Problem 30P
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Transcribed Image Text:1. Sergio is single and has a 12 year old daughter
whom he supports and lives with him all year
round. Sergio's salary is $135,000. His tax
withholding is $19,750. His itemized deductions
total $16,750. What is Sergio's tax refund or
liability (how much does he owe to the IRS)?
(explain answer)
A. Owe $902 in tax.
B. Owe $2,042 in tax
C. Have a refund of $1,070
D. Have a refund of $2,042.
2. Nont's Piano Lessons Inc. is a calendar-year
taxpayer using the accrual method of accounting.
On October 1, 2020, the corporation received
$1,200 for a one-year contract beginning on that
date to provide 24 piano lessons. The company
provided 6 lessons this year under the contract.
How much income should the corporation
recognize for next year (2021) if the remaining
lessons are provided? (explain answer)
A) $200
B) $360
C) $900
D) $1,200
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