Problem 4-44 (a) (LO. 3)Anna-Catherine and Anthony were divorced on March 15, 2020, after four years of marriage. Their current year's income received beforethe divorce was as follows:Anthony's salary$88,000Anna-Catherine's salary92,000Rent a business office purchased by Anna-Catherine six years ago120,000Interest on CD Anthony inherited from his uncle two years ago630Dividends on stock in Anna-Catherine's name funded with her salary4,100Allocate the income to Anna-Catherine and Anthony assuming that they live in:a. California.Anthony:Anna-Catherine:b. Louisiana.Anthony: $Anna-Catherine:

Income statements refers to those financial statements which depicts the summarized version of the…

Anna-Catherine and Anthony were divorced on March 15, 2020, after four vears of marriage. Their current year's income received before the divorce was as follows: Anthony's salary Anna-Catherine's salary Rent a business office purchased by Anna-Catherine six years ago Interest on CD Anthony inherited from his uncle two years ago Dividends on stock in Anna-Catherine's name funded with her salary $8,000 92,000 120,000 630 4,100 Allocate the income to Anna-Catherine and Anthony assuming that they live in: a. California. Anthony: Anna-Catherine: $ b. Louisiana. Anthony: $ Anna-Catherine:

Anna-Catherine and Anthony were divorced on March 15, 2020, after four vears of marriage. Their current year's income received before the divorce was as follows: Anthony's salary Anna-Catherine's salary Rent a business office purchased by Anna-Catherine six years ago Interest on CD Anthony inherited from his uncle two years ago Dividends on stock in Anna-Catherine's name funded with her salary $8,000 92,000 120,000 630 4,100 Allocate the income to Anna-Catherine and Anthony assuming that they live in: a. California. Anthony: Anna-Catherine: $ b. Louisiana. Anthony: $ Anna-Catherine:

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 23CE: LO.3 Simba and Zola are married but file separate returns. Simba received 80,000 of salary and 1,200...

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LO.4, 8 Joyce, a widow, lives in an apartment with her two minor children (ages 8 and 10), whom she supports. Joyce earns 33,000 during 2019. She uses the standard deduction. a. Calculate the amount, if any, of Joyces earned income credit. b. During the year, Joyce is offered a new job that has greater future potential than her current job. If she accepts the job offer, her earnings for the year will be 39,000; however, she is afraid she will not qualify for the earned income credit. Using after-tax cash-flow calculations, determine whether Joyce should accept the new job offer. Since the child tax credit will be the same under either scenario, you can ignore it for purposes of this analysis.
LO.3 Simba and Zola are married but file separate returns. Simba received 80,000 of salary and 1,200 of taxable dividends on stock he purchased in his name and paid from the salary he earned since the marriage. Zola collected 900 in taxable interest on a certificate of deposit she inherited from her aunt. Compute Zolas gross income under two assumptions as to the state of residency of the couple. If an amount is zero, enter 0.
LO.4, 9 Walter and Nancy provide 60% of the support of their daughter (age 18) and son-in-law (age 22). The son-in-law (John) is a full-time student at a local university, and the daughter (Irene) holds various part-time jobs from which she earns 11,000. Walter and Nancy engage you to prepare their tax return for 2019. During a meeting with them in late March 2020, you learn that John and Irene have filed a joint return. What tax advice would you give based on the following assumptions? a. All parties live in Louisiana (a community property state). b. All parties live in New Jersey (a common law state).
LO.2 During 2019, Susan incurred and paid the following expenses for Beth (her daughter), Ed (her father), and herself: Beth qualifies as Susans dependent, and Ed would also qualify except that he receives 7,400 of taxable retirement benefits from his former employer. Beths psychiatrist recommended Red River Academy because of its small classes and specialized psychiatric treatment program that is needed to treat Beths illness. Ed, who is a paraplegic and diabetic, entered Heartland in October. Heartland offers the type of care that he requires. Upon the recommendation of a physician, Susan has an air filtration system installed in her personal residence. She suffers from severe allergies. In connection with this equipment, Susan incurs and pays the following amounts during the year: The system has an estimated useful life of 10 years. The appraisal was to determine the value of Susans residence with and without the system. The appraisal states that the system increased the value of Susans residence by 2,200. Ignoring the AGI floor, what is the total of Susans expenses that qualifies for the medical expense deduction?