Mr and Mrs Z both in their late s file a joint return for

Mrs Z received taxable royalty payments $ordinary income from copyrights she owns.

Mr Z received wages $ Federal tax withholding $

Mr Z also runs a business as a sole proprietor. Revenue $ Cost of Goods Sold $ Other expenses $including $ parking fines He uses the cash method of accounting. He included $ cash collected in advance from a client in revenue. At the end of the year, no service has been completed. He made a contribution of $ to a qualified selfemployed retirement plan. He sold some business assets with $ subject to depreciation recapture and the rest a net Section gain of $

Mr and Mrs Z own some investment assets. This year they received $ interest income from bonds issued by the state of Mississippi. They sold two stocks they had held for several years, one for a $ gain and one for a $ loss.

Itemized deductions $ Any preferential tax rate Federal estimated tax payments $

Calculate Mr and Mrs Zs AGI, taxable income, total tax liability, and amount due to the IRS or refund due to the taxpayers. Show your work.

Answer rating: 100% (QA)

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