10. Janet is single and claims two allowances on her Form W-4. Her salary is $1,800 per month.

a. Use the percentage method to calculate the amount of Janets withholding for a monthly pay period.

b. Use the withholding tables to determine the amount of Janets withholding for a monthly pay period.

11. In 2015, Lew earned wages of $384,828.

a. What is the amount of Social Security tax withheld from his salary?

b. What is the amount of Medicare tax withheld from his salary?

12. Provide answers to the following questions:

a. What form does an employer use to report wages to an employee?

b. When must the employer give this form to the employee?

c. What form does an employer use to report wages to the Social Security Administration?

d. When must the employer file the form with the Social Security Administration?

13. Cooke and Thatcher form the C&T Partnership. Cooke contributes equipment with a fair market value of $80,000 and a basis of $35,000, in exchange for an 80 percent interest in the partnership capital and profits. Thatcher performs services worth $20,000 for the partnership in exchange for a 20 percent interest in capital and profits.

a. What is the amount of Cookes recognized gain or loss (if any) as a result of the contribution to the partnership in exchange for the partnership interest?

b. What is Cookes basis in his partnership interest immediately after the contribution?

c. What is the amount of Thatchers recognized income or loss (if any) on the contribution to the partnership?

d. What is Thatchers basis in her partnership interest immediately after the contribution?

e. What is C&T Partnerships basis in the equipment received from Cooke?