c

Answer the questions in Group 2 Problems:

Problem 1 (page 9-41)

Phan Mai is a single taxpayer with two dependent children under age 17. Phan estimates her wages for the year will be $36,000, will have $5,700 of dependent care expenses, and her itemized deductions will be $11,000. Assuming Phan files as head of household, use Form W-4 on Pages 9-37 and 9-38 to determine the number of withholding allowances Phan should claim.

Problem 3 (page 9-41)

Sophie is a single taxpayer. For the first payroll period in October 2015, she is paid wages of $3,275 monthly. Sophie claims three allowances on her Form W-4.

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

b. Use the withholding tables to determine the amount of Sophies withholding for the same period.

Problem 5 (page 9-42)

Alice West (Social Security number 785-23-9873) lives at 13234 Madison Street, Milwaukee, WI 53214, and is self-employed for 2015. She estimates her required annual estimated tax payment for 2015 to be $6,816. She had a $576 overpayment of last years taxes, which she will apply against her first quarter estimated payment. Complete the first quarter voucher below for Alice for 2015.

Problem 14 (page 9-44)

Stew Beauf is a self-employed surfboard maker in 2015. His Schedule C net income is $115,000 for the year. He also has a part-time job and earns $9,100 in wages subject to FICA taxes. Calculate Stews self-employment tax for 2015 using Schedule SE on Pages 9-49 and 9-50.

Submit your answers in a Word document or Excel spreadsheet.

Chapter 10 Lab Work

Answer the following questions in Group 2 Problems:

Problem 4 (page 10-24 to 10-25)

Elaines original basis in the Hornbeam Partnership was $30,000. Her share of the taxable income from the partnership since she purchased the interest has been $90,000, and Elaine has received $80,000 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. Calculate Elaines current basis in her partnership interest.

Problem 9 (page 10-25 to 10-26)

L&JInterestsisapartnershipwithtwoequalpartners,LindaandJoanne.Thepartnership has income of $69,000 for the year before guaranteed payments. Guaranteed payments of $45,000 are paid to Linda during the year. Calculate the amount of income that should be reported by Linda and Joanne from the partnership for the year. Linda should report income of $ Joanne should report income of

Problem 11 (page 10-26)

Quince Interests is a partnership with a tax year that ends on September 30, 2015. During that year, Potter, a partner, received $3,000 per month as a guaranteed pay- ment, and his share of partnership income after guaranteed payments was $23,000. For October through December of 2015, Potter received guaranteed payments of $4,000 per month. Calculate the amount of income from the partnership that Potter should report for his tax year ending December 31, 2015.