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Attached is my accounting question. I need help in solving it. It relates to taxation H, age 45, and W, age 43, are married with

Attached is my accounting question. I need help in solving it. It relates to taxation

image text in transcribed H, age 45, and W, age 43, are married with two dependent children: M, age 18, and N, age 19. Both are full-time students at a local university. H, who is president of a local bank, is paid a salary of $125,000. He also is the sole proprietor of a jewelry store that had a net profit for 2015 of $75,000. W, a registered nurse at a large hospital, is paid a salary of $50,000. In addition to the above income, H and W received the following during 2015: a. $3,000 cash dividend on ABC, Inc. stock, which they own jointly. They paid $25,000 for the stock three years ago and it has a current market value of $40,000. ABC, Inc. has $300,000 of current and accumulated E&P. b. $750 in interest on State of Michigan bonds that H owns. c. $7,000 in interest on corporate bonds that H and W purchased two years ago at face value for $100,000. d. W received a check for $400 from her employer in recognition of her outstanding service to the hospital during the past 10 years. e. The bank provides H with $90,000 of group term life insurance protection. The bank provides all fulltime employees with group term insurance. f. 1,000 shares of XYZ common as a stock dividend. Prior to the distribution, H and W owned 9,000 shares of common with a basis of $15,000. H and W did not have the right to receive cash or other assets in lieu of the stock. g. Because W must be available should an emergency arise, she is required to eat her lunches in the hospital cafeteria. The value of the free meals provided by her employer during 2015 was $1,100. h. H's grandfather passed away in February 2015, leaving H a 400-acre farm in southern Illinois valued at $500,000. H rented the land to F, a neighboring farmer, for $13,000. i. In order to drain off the excess surface water from 10 acres, F (see (h) above) installed drainage pipe at a cost of $1,500. j. W sold 50 shares of DEF stock for $100 per share. She bought the stock four years ago for $1,800. k. H received a dividend check for $280 from the MNO Mutual Life Insurance Company. H purchased the policy in 2002, and W is the primary beneficiary. l. H and W's only itemized deductions were interest on their home mortgage, $18,000; property taxes on their home, $4,000; and charitable contributions, $6,000. m. The hospital withheld $11,000 of Federal income taxes on W's salary and the appropriate amount of FICA taxes. The bank withheld $30,000 in Federal income taxes from H's salary and the appropriate amount of FICA taxes. Furthermore, H's quarterly estimated tax payments for 2015 total $35,000. Calculate H and W's 2015 Federal income tax assuming they file a joint return

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