L. A. and Paula file as married taxpayers. In August of this year, they received a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
L. A. and Paula file as married taxpayers. In August of this year, they received a $6,750 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula include in gross income under the following independent scenarios? Assume the standard deduction last year was $24,000. (Leave no answer blank. Enter zero if applicable.) a. Last year L. A. and Paula had itemized deductions of $119,120, and they chose to claim the standard deduction. Refund to be included b. Last year L. A. and Paula claimed itemized deductions of $33,750. Their itemized deductions included state income taxes paid of $7,620 and no other state or local taxes. Refund to be included c. Last year L. A. and Paula claimed itemized deductions of $30,450. Their itemized deductions included state income taxes paid of $13,700, which were limited to $10,000 due to the cap on state and local tax deductions. Refund to be included Larry purchased an annuity from an insurance company that promises to pay him $1,000 per month for the rest of his life. Larry paid $113,880 for the annuity. Larry is in good health and he is 72 years old. Larry received the first annuity payment of $1,000 this month. Use the expected number of payments in Exhibit 5-1 for this problem. (Round "Expected return multiple" answer to 1 decimal place and all other answers to the nearest whole number.) a. How much of the first payment should Larry include in gross income? Amount to be included b. If Larry lives more than 15 years after purchasing the annuity, how much of each additional payment should he include in gross income? Amount to be included L. A. and Paula file as married taxpayers. In August of this year, they received a $6,750 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula include in gross income under the following independent scenarios? Assume the standard deduction last year was $24,000. (Leave no answer blank. Enter zero if applicable.) a. Last year L. A. and Paula had itemized deductions of $119,120, and they chose to claim the standard deduction. Refund to be included b. Last year L. A. and Paula claimed itemized deductions of $33,750. Their itemized deductions included state income taxes paid of $7,620 and no other state or local taxes. Refund to be included c. Last year L. A. and Paula claimed itemized deductions of $30,450. Their itemized deductions included state income taxes paid of $13,700, which were limited to $10,000 due to the cap on state and local tax deductions. Refund to be included Larry purchased an annuity from an insurance company that promises to pay him $1,000 per month for the rest of his life. Larry paid $113,880 for the annuity. Larry is in good health and he is 72 years old. Larry received the first annuity payment of $1,000 this month. Use the expected number of payments in Exhibit 5-1 for this problem. (Round "Expected return multiple" answer to 1 decimal place and all other answers to the nearest whole number.) a. How much of the first payment should Larry include in gross income? Amount to be included b. If Larry lives more than 15 years after purchasing the annuity, how much of each additional payment should he include in gross income? Amount to be included
Expert Answer:
Answer rating: 100% (QA)
Answer Part 1 a Answer Refund to be included0 They are not required to include any ... View the full answer
Related Book For
Essentials of Federal Taxation 2019
ISBN: 9781260190045
10th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
Students also viewed these accounting questions
-
A. and Paula file as married taxpayers. In August of this year they received a $5,200 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula...
-
L. A. and Paula file as married taxpayers. In August of this year they received a $5,200 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula...
-
L. A. and Paula file as married taxpayers. In August of this year, they received a $5,200 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula...
-
How often is the lifecycle sustainment plant updated? A. Before in initial operation, test and evaluation. B. At each milestone decision. C. Prior to each major change to the product of strategy. D....
-
The balance on Nucorps revolving loan began the month at $35,000. On the eighth of the month another $10,000 was borrowed. Nucorp was able to repay $20,000 on the twenty-fifth of the 31-day month....
-
A sequence is an infinite, ordered list of numbers that is often defined by a function. For example, the sequence {2, 4, 6, 8, . . . .} is specified by the function f (n) = 2n, where n = 1, 2, 3, . ....
-
George Gonzalez Construction Company is considering the purchase of a new road grader. The cost of the road grader is \($68,000\). The road grader has an estimated useful life of seven years and an...
-
The Jimenez Corporation's forecasted 2011 financial statements follow, along with some industry average ratios. a. Calculate Jimenez's 2011 forecasted ratios, compare them with the industry average...
-
. Question 13 of 20 : States! the best answer for the question 13. The common shares of Jones E. Smith. Inc. sell for $22 per share. The firm is expected to set its next annual dividend at $0.68...
-
A counter-current gas-absorption column is to be designed to remove CO 2 from an inert gas stream by reaction with an amine solution at 20C. At this temperature, CO 2 reacts with the amine according...
-
The following tables form part of a database held in a relational DBMS ( Primary Key , Foreign Key ): Book ( Book_ID , Publisher, Type, Year, Edition, Price) Employee ( Employee_No , FirstName,...
-
(20 points) Two crates are stacked in an elevator car that begins to accelerate in the upwards direction at a constant 1.75 m/s2. The top crate has a mass of 12.0 kg, and the bottom crate has a mass...
-
Question 19 ArrayList - Coding Goal: Given the following ArrayList class, which is an ArrayList with a backingArray and a size variable (the same as your homework), implement the addAll(T[] arr, int...
-
You are given the following data for J Corp for January 2020: Purchases of raw materials on account of 70,000; RM inventory, beginning is 13,000; RM, ending inventory balance is 10,000; Indirect...
-
NUBD Co. is planning to market 300,000 units of Product X. The fixed costs are P600,000 and the variable costs are 60% of the selling price. Compute the selling price per unit if the company expects...
-
A product is sold at $100 and its contribution margin percentage is 20%. It also has a fixed cost of $800,000. What is the breakeven sales revenue?
-
. QUESTION 17 Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for the years 8-10. Thereafter, starting in year 11, the company will pay...
-
What are the two components of a company's income tax provision? What does each component represent about a company's income tax provision?
-
Compare and contrast 1245 recapture and 1250 recapture.
-
Metro Corp. traded Land A for Land B. Metro originally purchased Land A for $50,000 and Land As adjusted basis was $25,000 at the time of the exchange. What is Metros realized gain or loss,...
-
In its first year of existence, SMS, an S corporation, reported a business loss of $10,000. Michelle, SMSs sole shareholder, reports $50,000 of taxable income from sources other than SMS. What must...
-
Convert 3.2117 to fraction form.
-
Calculate \(\frac{12}{25} \times \frac{10}{21}\).
-
1. Calculate \(\frac{4}{21} \div \frac{6}{35}\). 2. Calculate \(\frac{1}{8} \div \frac{5}{28}\).
Study smarter with the SolutionInn App