Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

? 06 Graded Assignment Jeremy and Alyssa Johnson have been maried for five years and do not have any children. Jeremy was married previously and

image text in transcribed
? 06 Graded Assignment Jeremy and Alyssa Johnson have been maried for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is sell employed and operates hits own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This year, the Johnsons received $255,000 of gross income. a. Expenses associated with Jeremy's store inckude $40,000 in salary (and employment taxes) to employees. $45.000 of supplies. and $18,000 in rent and other administrative expenses b. As a salesperson, Alyssa incurred $2.000 in travel expenses related to her employment that were not reimbursed by her employer c The Johnsons own a piece of raw land held as an investment. They paid $500 of real property taxes on the property and they incurred $200 of expenses in travel costs to see the property and to evaluate other similar potential investment properties d. The Jobnsons own a rental home. They incurred $8,500 of expenses assoclated with the property e. The Johnsons' home was only five miles from the Office Depot store where Alyssa worked in January and February. The ST store was 60 milies from their home, so the Johnsons decided to move to make the commute easier for Alyssa. The Johnsons new home was only 10 miles from the ST store. However, their new home was 50 miles from their former residence. The Johnsons paild a moving company $2,002 to move their possessions to the new location. They also drove the S0 miles to their new residence They stopped along the way for lunch and spent $60 eating at Denny's None of the moving expenses were relmbursed byST t. Jeremy paid $4.500 for health Insurance coverage for himself Inot through an exchange). Alyssa was covered by health plans provided by her employer, but Jeremy is not eligible for the plan until next year g. Jeremy paid $2,500 in sell employment taxes ($1250 represents the employer portion of the self-employment taxes) h. Jeremy pald $5,000 in alimony and $3.000 in child support from his prior marriage L. Alyssa paid $3,300 of tuition and fees to attend night classes at a local university. The Johnsons would like to deduct as much of this expenditure as possible rather than claim a creda . The Johnsons donated $2,000 to their favorite charity. Determine the Johnsoms AGI given the following information assume the 201? rules apply for purposes of the qualified education expense deduction): Married fillng jointly (Round your intermediote computations to the nearest whole doilar value.) C Prev 5 of S DOLL

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: David Ricchiute

7th Edition

0324117760, 978-0324117769

More Books

Students also viewed these Accounting questions

Question

Identify the adjustments made in calculating the AMT.

Answered: 1 week ago

Question

1. Identify three approaches to culture.

Answered: 1 week ago

Question

3. Identify and describe nine cultural value orientations.

Answered: 1 week ago