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ACCT 553 - Course Project You may use Microsoft Excel or Microsoft Word to complete this Project. Solve the following 5 exercises. Each Exercise is...

Rodney and Alice Jones have three small

children, ranging in age from 5 to 10. One child is blind and needs special care. Rodney works as

an accountant for a large CPA firm and has gross income of $45,000. Alice is a lawyer with a

national law firm and earns $48,000. Rodney’s parents are quite old, and he and his two brothers

ACCT 553 – Course Project You may use Microsof Excel or Microsof Word to complete this Project. Solve the Following 5 exercises. Each Exercise is independent oF each other and is worth 50 points making it a total oF 250 point Project. Grading Rubric Possible Points Possible Points Number of Exercises 5 AtempT 10% 25 PresenTa±on 10% 25 CompleTe & correcT 80% 200 ²oTal poinTs 100% 250 Exercise 1: (Tax Return Problem). Bert and Barbara Longfelt support in nursing homes both Bert’s parents and Barbara’s parents. Bert’s parents are 70 and 68 years of age respec±vely and have no income except for the $3,600 in Social Security they receive annually. Barbara’s parents, both 72 years of age, have the following sources of income: Social Security $9,800 Interest Income (Joint Ownership) $2,600 Dividend Income $900 Bert’s annual salary is $45,000 and his wife’s annual salary is $55,000. They have two small children who live at home. Also, they own an apartment house from which they derive $6,000 net rental income. Two items from their rental property confused them so they did not include them in their rental income: Security deposits received and to be used against Fnal month’s rent $500 Two tenants paid rent in advance in December 2015. The rent was due January 1, 2016 $600
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Barbara owned stock prior to her marriage to Bert and received the following cash dividends: General Corp. nonqualiFed common stock dividend (U.S. corporaTon) $300 Live ±orever Life Insurance Co. (dividends on life insurance policy) $100 Bert and Barbara have several sources of interest income: Interest income from savings accounts $850 Interest income from State of ²ennessee Highway Bonds $400 Barbara entered the local area bake-o³, won Frst place for her cherry pie, and received a $1,000 cash prize. Bert, who is an accountant, made an arrangement with Harold the denTst. Bert would do Harold’s tax work if Harold would take care of Bert and his family’s dental work. During the year, Bert esTmated that the value of his services to Harold was $500 and that Harold gave Bert and his family $600 worth of dental services. In December, Bert did a consulTng assignment on a weekend and received $700. No Social Security or taxes were withheld. During the year, they had $15,000 withheld for federal taxes. During 2015, Bert and Barbara have $14,000 of itemized deducTons. Compute Bert and Barbara’s net tax due, including self-employment tax. Assume dividends are taxed at ordinary rates. ____________________________________________________________________________ Exercise 2: (Tax Return Problem). Rodney and Alice Jones have three small children, ranging in age from 5 to 10. One child is blind and needs special care. Rodney works as an accountant for a large CPA Frm and has gross income of $45,000. Alice is a lawyer with a naTonal law Frm and earns $48,000. Rodney’s parents are quite old, and he and his two brothers enTrely support them according to the following percentages: Rodney 45%
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Question: Rodney and Alice Jones have three small
children, ranging in age from 5 to 10. One child is blind and needs special care. Rodney works as
an accountant for a large CPA firm and has gross...

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