Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alice Johnson is a single taxpayer and is employed as a secretary by State University of Florida. She has the following items pertaining to her

image text in transcribedAlice Johnson is a single taxpayer and is employed as a secretary by State University of Florida. She has the following items pertaining to her income tax for the current year.

Received a $20,000 salary from her employer, who withheld $3,000 federal income tax.

Received a gift of 1,000 shares of Ace Corporation stock with a $100,000 FMV from her mother. She also received $4,000 of cash dividends from the Ace Corporation. The dividends are qualified dividends.

Received $1,000 of interest income on bonds issued by the City of Tampa.

Received a regular stock dividend (nontaxable under Sec. 305) of 50 shares of Ace Corporation stock with a $5,000 FMV.

Alice's employer paid $2,000 of medical and health insurance permiums on her behalf.

Received $12,000 alimony from her ex husband.

State University provided $60,000 of group term life insurance. Alice is 42 y/o and not a key employee.

Recieved a $1,000 cash award from her employer being designated as Secretary of the Year.

Total itemized deductions are $8,000

Complete form 1040 and accompanying schedules for Alice's 2016 return

Alice Johnson, Social Security number 222-23-3334, is a single taxpayer and is employed as a secretary by State University of Florida. She has the following items pertaining to her income tax return for the current year: Received a $20,000 salary from her employer, who withheld $3,000 federal income tax. Received a gift of 1,000 shares of Ace Corporation stock with a $100,000 FMV from her mother. She also received $4,000 of cash dividends from the Ace Corporation. The dividends are qualified dividends. Received $1,000 of interest income on bonds issued by the City of Tampa. Received a regular stock dividend (nontaxable under Sec. 305) of 50 shares of Ace Corporation stock with a $5,000 FMV. Alice's employer paid $2,000 of medical and health insurance premiums on her behalf. Received $12,000 alimony from her ex-husband. State University provided $60,000 of group term life insurance. Alice is 42 years old and is not a key employee. The table in the text is applicable. Received a $1,000 cash award from her employer for being designated the Secretary of the Year. Total itemized deductions are $8,000. Complete Form 1040 and accompanying schedules for Alice Johnson's 2015 return

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

Modern Auditing

Authors: William C. Boynton, Walter G. Kell

6th Edition

0471596876, 9780471596875

More Books

Students also viewed these Accounting questions