Cecil C. Seymour is a 64-year-old widower. He had income for 2013 as follows: Pension from former

Question:

Cecil C. Seymour is a 64-year-old widower. He had income for 2013 as follows:

Pension from former employer ................................... $39,850

Interest income from Alto National Bank .......................... 5,500

Interest income on City of Alto bonds .............................. 4,500

Dividends received from IBM ...................................... 2,000

Collections on annuity contract he purchased

from Great Life Insurance ........................................... 5,400

Social Security benefits ............................................ 14,000

Rent income on townhouse .........................................9,000

The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payments of $450. Cecil has received 22 payments through 2013.

Cecil's 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on January 2, 2013. She used the money to start a new business. Cecil does not charge her interest because she could not afford to pay it, but he does expect to eventually collect the principal. Sarah is living with Cecil until the business becomes profitable. Except for housing, Sarah provides her own support from her business and $1,600 in dividends on stocks that she inherited from her mother. Other relevant information is presented below:

• Cecil's Social Security number: 123-45-6785

• Address: 3840 Springfield Blvd., Alto, GA 30510

• Sarah's Social Security number: 123-45-6784

• Expenses on rental townhouse:

Utilities .................................... $2,800

Maintenance ................................ 1,000

Depreciation ................................ 2,000

Real estate taxes .............................. 750

Insurance....................................... 700

• State income taxes paid: $3,500

• County personal property taxes paid: $2,100

• Payments on estimated 2013 Federal income tax: $5,900

• Charitable contributions of cash to Alto Baptist Church: $6,400

• Federal interest rate: 6%

• Sales taxes paid: $912

Compute Cecil's 2013 Federal income tax payable (or refund due)?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...