Case: Wilson JohnsonWilson Johnson, a childhood, friend has asked you to assist with his personal finances.Single and 30 years old, he is employed as an accountant with a technology company.Wilson has moved from a two-bedroom $650 apartment to a condo costing $1,100 permonth. The association owns two golf courses, a lake and an activities center.His other monthly expenses include:Renter's Insurance$25550Car paymentUtilities235Cell phone200House phone50Food225Clothes125Car Expenses260Entertainment350Wilson is surprised how much he spends on clothing and entertainment. He uses creditcards...the balance is $7,500 and climbing. Wilson makes the required monthlypayments. He would like to reduce the balance and pay it offWilson's other goal is to save for retirement by putting $4,500 per year away and retiringat 60. He wants to start saving in 5 years and does not think the delay will greatly affectthe amount of retirement savingsWilson has a current balance in his checking account of $3,500 and S400 in his savingsaccount. He has furniture valued at $1,800 and owns $1,500 of tech stocks, which hethinks, will grow by leaps and bounds.Case Questions - Section 1:la) Prepare a personal cash flow statement for Wilson JohnsonPersonal Cash Flow Statement (Monthly)Cash InflowsCash Outflows

Personal Cash flow statement reflects the cash inflows and outflows of an individual in order to…

Answered: Wilson Johnson, a childhood, friend has…

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter10: Protecting Your Property

Section: Chapter Questions

Problem 5FPE

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Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2018 traveling in Europe and was not a college student. He had gross income of 4,655 in 2018. Bill paid 4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the 4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2018, and many of her expenses were not reimbursed by her health insurance. Ashley owns Panda Enterprises, LLC (98-7654321), a data processing service that she operates as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2018 Form 1040, Schedule C for Panda Enterprises shows revenues of 315,000, office expenses of 66,759, employee salary of 63,000, employee payroll taxes of 4,820, business meal expenses (before the 50% reduction) of 22,000, and rent expense of 34,000. The rent expense includes payments related to renting an office (30,000) and payments related to renting various equipment (4,000). There is no depreciation because all depreciable equipment owned has been fully depreciated in previous years. No fringe benefits are provided to the employee. Ashley personally purchases health insurance on herself and Bill. The premiums are 23,000 per year. Ashley has an extensive stock portfolio and has prepared the following analysis: Note: Ashley received a Form 1099B from her stockbroker that included the adjusted basis and sales proceeds for each of her stock transactions. The per-share cost includes commissions, and the per-share selling price is net of commissions. Also, the dividends are the actual dividends received in 2018, and these are both ordinary dividends and qualified dividends. Ashley had 800 of interest income from State of Ohio bonds and 600 of interest income on her Wayne Savings Bank account. She paid 25,000 of alimony to her former husband. His Social Security number is 123-45-6788. Ashley itemizes her deductions and provides the following information, which may be relevant to her return: Ashley made a 26,000 estimated Federal income tax payment, does not want any of her taxes to finance presidential elections, has no foreign bank accounts or trusts, and wants any refund to be applied against her 2019 taxes. Compute Ashleys net tax payable or refund due for 2018. If you use tax forms for your computations, you will need Form 1040 and its Schedules 1, 4, 5, A, C, D, and SE and Form 8949. Ashley qualifies for the 199A deduction for qualified business income. Be sure to include that in your calculations. Suggested software: ProConnect Tax Online.
Harry's wife Lila passes away in January of the current year. Fortunately, Lila had a $1 million life insurance policy. Harry elects to receive all $1 million in the current year and spends $200,000 of it on a luxury around-the-world trip with his new girlfriend. Harry's gross income from the life insurance is: $0 $200,000 $800,000 $1,000,000
Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2020 traveling in Europe and was not a college student. He had gross income of $4,655 in 2020. Bill paid $4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2020, and many of her expenses were not reimbursed by her health insurance. Ashley owns Panda Enterprises LLC (98-7654321), a data processing service that she reports as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2020 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000,…
Jack is a lawyer who is a member at Ocean Spray Country Club where he spends $7,200 in dues, $4,000 in business meals, and $2,000 in green fees to entertain clients. He has separate invoices for the meals. He is also a member of the local Rotary club where he meets potential clients. The dues for the Rotary club are $1,200 a year. How much of the above expenses can Jack deduct as business expenses? a.$7,200 b.$4,200 c.$3,200 d.$14,400 e.None of these choices are correct.
The following information applies to Jasmine, who is single, for 2020: Salary $56,350 Interest income from First Bank of Lexington 1,500 Dividends from Watters Company stock 3,000 Contribution to a traditional IRA 4,000 Loan repayment from her friend 1,000 Capital loss from sale of personal vehicle (2,300) Number of potential dependents ? Age 44 Jasmine maintains a household for her sister, who has $9,000 from Social Security. In addition, Jasmine's aunt lives with her and has income of $3,000. Click here to access the standard deduction table to use. Indicate whether the following items are taxable or nontaxable to Jasmine. Salary Taxable Loan repayment from a friend Not taxable Interest income Taxable Dividend income Taxable Identify whether the items are deductible (fully or partially) by Jasmine. Contribution to a traditional IRA Deductible Capital loss from sale of personal vehicle Not deductible Jasmine's…
Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2019 traveling in Europe and was not a college student. He had gross income of $4,655 in 2019. Bill paid $4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2019, and many of her expenses were not reimbursed by her health insurance. Ashley owns Panda Enterprises, LLC (98-7654321), a data processing service that she reports as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2019 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000,…
Gabriel Godwin purchases a tiny home for his elderly mother. After a large down payment, he finances $88,600 at 5% for 10 years. Prepare a repayment schedule for the first two payments. payment number total payment interest payment principal payment remaining balance
Thomas Green, of Laramie, Wyoming, has been a retail salesclerk for six years. At age 35, he is divorced with one child, Amanda, age 7. Thomas' salary is $46,000 per year. He regularly receives $500 per month for child support from Amanda's mother. Thomas invests $100 each month ($50 in his mutual fund and $50 in U.S. savings bonds). ASSETS Amount Vested retirement benefits(no employee contribution) $ 6,000 Money market account (includes $150 of interest earned last year) 5,000 Mutual fund (includes $200 of reinvested dividend income from last year) 5,000 Checking account 1,000 Personal property 4,000 Automobile 11,500 U.S. savings bonds 3,500 LIABILITIES Outstanding Balance Dental bill (pays $25 per month and is included in uninsured medical/dental) $ 450 Visa (pays $100 per month) 3,500 Student loan (pays $100 per month) 6,500 ANNUAL FIXED EXPENSES Amount Auto insurance $ 780 Rent 12,000 Uninsured medical/dental 1,000 Federal income…
Victor and Maria Hernandez Look at Future Income Throughout this book, we will present a continuing narrative about Victor and Maria Hernandez. Following is a brief description of the lives of this couple.Victor and Maria, both in their late 30s, have two children: Jacob, age 13, and Nicholas, age 15. Victor has had a long sales career with a retail appliance store in Fargo, North Dakota earning $55,000 annually. Maria works as a medical records assistant earning $31,000. Victor and Maria regularly buy and sell a number of items on eBay, Craig's List, and through the free community newspaper, from which they earn about $5,000 each year. What is the accumulated future value of those annual amounts over 22 years if the annual earnings were invested regularly and provided a 5 percent return each year? (Hint: Use Appendix A-3.) Round your answer to nearest dollar. Round Future Value of Series of Equal Amounts in intermediate calculations to four decimal places $ What would Victor and…
Meredith Grey and Derek Shepherd had a lot going on in 2020. Working as doctors at Seattle Grace Hospital, the married couple earned $231,000 each in salary. The only other person in their household is one, adopted daughter, Zola Grey Shepherd, age 8. At the beginning of the year, Meredith’s mother Ellis Grey passed away. From this, Meredith received $250,000 in inheritance and $100,000 from a lump sum payment of life insurance proceeds. Meredith made two different investments with the inheritance and life insurance proceeds. She invested $150,000 of the total $350,000 above in a portfolio of stocks and bonds (none of which were municipal bonds) to save for her and Derek’s future retirement. The portfolio of stocks and bonds increases in value by $15,000 over the year but Meredith and Derrick do not sell any of these investments during the year. Finally, Derek and Meredith received an award worth $25,000 based on medical research they had done during the year. They kept the award money…
Barbara was driving her vehicle, and her friend Kevin was a passenger. They were starting a one-week visit with Kevin's parents, who live in the same state about 150 miles south of the town where Barbara and Kevin live. Barbara's vehicle is insured under a PAP listing her as the named insured. These are the coverages included in the policy: Coverage A-Liability: $50,000 Each person $100,000 Each occurrence Property Damage: $50,000 Coverage B-Medical Payments: $1,000 Each person Coverage C-Uninsured Motorists: $50,000 Each person $100,000 Each occurrence To lower her premiums, Barbara decided not to carry Coverage D-Damage to Your Auto on her five-year old vehicle. About one hour into the trip, as they were traveling in the southbound lanes of the highway, a northbound vehicle crossed the median and struck Barbara's vehicle. This four-door sedan was operated by Louise, who died at the scene. As part of the accident investigation, it was determined that Louise suffered a heart attack,…

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