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separate return is required unless Ellen qualifies as an abandoned spouse (and thus, head of household). However, since Mike is gone, a married filing separate return is necessary since he is not around to sign a joint return. In 2015, Joy, though still married,qualifies as an abandoned spouse and, thus, head of household.Chapter 3 P-50Julian and Georgia file a joint return. They have adjusted gross income of $112,000 anditemized deductions of $12,800. Are they required to use the Tax Rate Schedules or the Tax Tables in computing their income tax?AGI $112,000ID ($12,600)PE (7,900) (3950 x 2)Tax income :$91,500Chapter 3 P-55A single taxpayer has $150,000 in wages and $180,000 in net self-employment income. What is the amount of Additional Medicare Tax that would be due on Form 1040 for the year?180,000.00 * .9235 = 166,230180,000.00 * .0765 = 13,770 deemed deduction180,000.00 – 13,770.00 = 166,230.00 *15.3%= 25,433.00 self employment taxChapter 4 P-21Leah Sarah is employed at Cleveland Inc. at an annual salary of $45,000. Leah received $35,000 in salary in 2015 from Cleveland Inc., a prosperous company. They credited the unpaid salary to Leah Sarah’s account. Leah only had to stop by the payroll
office to receive her money. In January 2016, Leah Sarah requested and received the remaining $10,000 of her salary. How much income must Leah Sarah report on her 2015 income tax return?Leah needs to recognize $45,000 in her 2015 gross income. Leah has the right to the money in 2015; she must recognize it as income in 2015.Chapter 4 P-23Fred Miller, a teacher, had several additional sources of income during 2015. He received a $500 gift as a result of his helping a friend build a house, and he was assigned $300 of interest due his uncle on bonds his uncle owns. He also had the use of a van (value of $1,000) for the year from his parents who were traveling. Further, he