Eddie - Nien Hen Chen 555033 Pb. 1 Gross income Salary...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Nien Hen Chen 555033 Pb. 1 Gross income Salary income 700,000 IBM bonds 70,000 US Virgin Island bonds nontaxable 770,000 Dedction for AGI Alimony (15,000) AGI 770,000 Deduction- Standard HOHD 8,350 Dedction- Itemized (greater) California income tax 60,000 Property tax on new home 27,000 Home mortgage 1.1/2.5 × (50,000+125,000) 77,000 IBM bonds interest 70,000 Medical expenses Medical insurance 15,000 Dental bill 115,000 Trasportation 3,600 mile × $ 0.24 864 Sustotal 130,864 Less 7.5% AGI (56,625) 130,864 Miscellaneous expenses Tax prparation 18,000 Investment adviso fee 7,500 Sustotal 25,500 Less 2% AGI (15,100) 10,400 Subtotal itemized deduction 375,264 Less 1% of AGI over 166,800 5,882
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Total itemized deduction 375,264 Pb. 1 Deduction- Exemptions: 1 personal and 1dependancy 7,300 Phaseout of AGI> 208,500 (2,434) 4,866 Taxable income 394,736 Net tax 104,892.5+(35%×64,427) 127,442 Deduction of child tax credit 1 qualifying child 1,000 Less AGI>75,000 (755,000-75,000)÷1000×50 (1,000) 0 Deduction of child care expenses 1 qualifying child cost - 9,000 3,000 20% Limitation: AGI >43,000 3,000×20% 600 Net tax liability 126,842
Background image of page 2
Pb. 2 Gross income Salary 80,300 Payment for damage 7,000 87,300 Deduction for AGI 0 AGI 87,300 Dedction- Standard (greater) HOHD 8,350 Additional- blind 1,400 9,750 Deduction- Itemized California income tax 9,000 Medical expenses 4,500 Less 7.5% AGI 6,548 0 9,000
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/08/2010 for the course ACCOUNTING 360 taught by Professor Ted during the Spring '10 term at Golden Gate.

Page1 / 10

Eddie - Nien Hen Chen 555033 Pb. 1 Gross income Salary...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online