Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can someone please help me and let me know about the calculations. thank you Tal Opport ! 42 Addison Parker (Social Security number 123-45-6785), single
can someone please help me and let me know about the calculations. thank you
Tal Opport ! 42 Addison Parker (Social Security number 123-45-6785), single and age 32, lives at 3218 Columbia Drive, Spokane, WA 99210. She is employed as regional sales man- ger by VITA Corporation, a manufacturer and distributor of vitamins and food supplements. Addison is paid an annual salary of $83.000 and a separate travel allowance of $28,000. In order to access the travel allowance, VITA requires ade- quate accounting by Addison. Addison participates in VITA's contributory health and $ 401(k) plans. During 2019, she paid $4,500 for her share of the medical insurance and contributed $11,000 to the $ 401(k) retirement plan. Addison uses her automobile 70% for business and 30% for personal. The auto- mobile, a Toyota Avalon, was purchased new on June 30, 2017, for $37.000 (no trade-in was involved). Depreciation has been claimed using the MACRS 200% declining-balance method, and no $ 179 election was made in the year of pur- chase. (For depreciation information, see the IRS Instructions for Form 4562 Part V.) During 2019, Addison drove 15,000 miles and incurred and paid the fol- lowing expenses relating to the automobile: Gasoline Insurance Auto club dues Interest on car loan Repairs and maintenance Parking (during business use) Traffic fines (during business use) $3,100 2,900 240 1,100 1,200 600 500 wpany expects Add of living space in he Expenses for 201 Mau VITA des not have an office in Spokane, the company son to m in her home. Out of 1.500 square feet of living apartment Add as seaside 300 square feet as an office. Expcns relating to the office are listed below: $18.000 4000 Insurance chaty and the coverage 1,600 Carpet replacement office are only! Korea) for 2019 Us 1.200 Action's employment related expenses (except for the trip to Korea are m ed below and airport imos) Transportation $4,100 3.200 Arfare 2.800 Lodging 300 540 Business gifts 400 Continuing education 140 Mofessional joumas Most of Addison's business trips involve visits to retail outlets in her region Store man and their key employees, as well as some suppliers, were the parties entertained. The business gifts were boxes of candy costing $30 ($25 each plus $5 for wrapping and shipping) sent to 18 store managers at Christmas. The continuing education as a noncredit course dealing with improving managemen skills that Addison took online. In July 2019. Addison traveled to Korea to investigate a new process that is being desped to convert fish parts to a solid consumable tablet form. She spent one weck checking out the process and then took a one-week vacation tour of the country. The round-trip airfare was $3,600, and her expenses relating to business were $2,100 for lodging ($300 each night), $1,470 for meals, and $350 for trans- portation. Upon returning to the United States, Addison sent her findings about the process to her employer. VITA was so pleased with her report that it gave her an employee achievement award of $10,000. The award was sent to Addison in January 2020. . Besides the items already mentioned, Addison had the following receipts in 2019: Interest income- City of Tacoma general purpose bonds $ 350 Olympia State Bank 400 $ 750 Proceeds from property sales- City lot $13,000 Sailboat 18,000 31,000 Cash found at airport 5,000 Regarding the city lot dlocated in Vancouver, Addison purchased the property 2004 for $16,000 and held it as an investment. Unfortunately, the neighbor where the lot was located deteriorated, and property values declined, in Addison decided to cut her losses and sold the property for $13,000. The sailboa was used for pleasure and was purchased in 2015 for $16.500, Addison sold the boat because she purchased a new and larger model (see below). While at the spoline airport, N on found an unmarked envelope containine 55.000 bills. Because no mention of any lost funds was noted in the media, ad kept the money. lison's expenditures for 2019 (not previously noted) are summarized below. Medical (not covered by insurance) Suate and local general sales tax Church pledge (2019 and 2020) Fee paid for preparation of 2018 income tax return Contribution to mayor's reelection campaign fund Contribution to a Coverdell Education Savings Account (on behalf of a favorite nephew) $7,897 3,300 5,600 500 200 2,000 Addison keeps careful records regarding sales taxes. In 2019, the sales tax total was unusually high due to the purchase of a new sailboat. In 2019. Addison decided to pay her church pledge for both 2019 and 2020. The insurance premium was on a policy covering her father's life. (Addison is the designated beneficiary under the policy.) Addison's employer withheld $8,600 for Federal income tax purposes, and she applied her $800 overpayment for 2018 toward the 2019 tax liability. Compute Addison's Federal income tax payable (or refund) for 2019. In mak- ing the calculation, use the Tax Rate Schedule and disregard the application of the alternative minimum tax (AMT), which is not discussed until Chapter 12. Tal Opport ! 42 Addison Parker (Social Security number 123-45-6785), single and age 32, lives at 3218 Columbia Drive, Spokane, WA 99210. She is employed as regional sales man- ger by VITA Corporation, a manufacturer and distributor of vitamins and food supplements. Addison is paid an annual salary of $83.000 and a separate travel allowance of $28,000. In order to access the travel allowance, VITA requires ade- quate accounting by Addison. Addison participates in VITA's contributory health and $ 401(k) plans. During 2019, she paid $4,500 for her share of the medical insurance and contributed $11,000 to the $ 401(k) retirement plan. Addison uses her automobile 70% for business and 30% for personal. The auto- mobile, a Toyota Avalon, was purchased new on June 30, 2017, for $37.000 (no trade-in was involved). Depreciation has been claimed using the MACRS 200% declining-balance method, and no $ 179 election was made in the year of pur- chase. (For depreciation information, see the IRS Instructions for Form 4562 Part V.) During 2019, Addison drove 15,000 miles and incurred and paid the fol- lowing expenses relating to the automobile: Gasoline Insurance Auto club dues Interest on car loan Repairs and maintenance Parking (during business use) Traffic fines (during business use) $3,100 2,900 240 1,100 1,200 600 500 wpany expects Add of living space in he Expenses for 201 Mau VITA des not have an office in Spokane, the company son to m in her home. Out of 1.500 square feet of living apartment Add as seaside 300 square feet as an office. Expcns relating to the office are listed below: $18.000 4000 Insurance chaty and the coverage 1,600 Carpet replacement office are only! Korea) for 2019 Us 1.200 Action's employment related expenses (except for the trip to Korea are m ed below and airport imos) Transportation $4,100 3.200 Arfare 2.800 Lodging 300 540 Business gifts 400 Continuing education 140 Mofessional joumas Most of Addison's business trips involve visits to retail outlets in her region Store man and their key employees, as well as some suppliers, were the parties entertained. The business gifts were boxes of candy costing $30 ($25 each plus $5 for wrapping and shipping) sent to 18 store managers at Christmas. The continuing education as a noncredit course dealing with improving managemen skills that Addison took online. In July 2019. Addison traveled to Korea to investigate a new process that is being desped to convert fish parts to a solid consumable tablet form. She spent one weck checking out the process and then took a one-week vacation tour of the country. The round-trip airfare was $3,600, and her expenses relating to business were $2,100 for lodging ($300 each night), $1,470 for meals, and $350 for trans- portation. Upon returning to the United States, Addison sent her findings about the process to her employer. VITA was so pleased with her report that it gave her an employee achievement award of $10,000. The award was sent to Addison in January 2020. . Besides the items already mentioned, Addison had the following receipts in 2019: Interest income- City of Tacoma general purpose bonds $ 350 Olympia State Bank 400 $ 750 Proceeds from property sales- City lot $13,000 Sailboat 18,000 31,000 Cash found at airport 5,000 Regarding the city lot dlocated in Vancouver, Addison purchased the property 2004 for $16,000 and held it as an investment. Unfortunately, the neighbor where the lot was located deteriorated, and property values declined, in Addison decided to cut her losses and sold the property for $13,000. The sailboa was used for pleasure and was purchased in 2015 for $16.500, Addison sold the boat because she purchased a new and larger model (see below). While at the spoline airport, N on found an unmarked envelope containine 55.000 bills. Because no mention of any lost funds was noted in the media, ad kept the money. lison's expenditures for 2019 (not previously noted) are summarized below. Medical (not covered by insurance) Suate and local general sales tax Church pledge (2019 and 2020) Fee paid for preparation of 2018 income tax return Contribution to mayor's reelection campaign fund Contribution to a Coverdell Education Savings Account (on behalf of a favorite nephew) $7,897 3,300 5,600 500 200 2,000 Addison keeps careful records regarding sales taxes. In 2019, the sales tax total was unusually high due to the purchase of a new sailboat. In 2019. Addison decided to pay her church pledge for both 2019 and 2020. The insurance premium was on a policy covering her father's life. (Addison is the designated beneficiary under the policy.) Addison's employer withheld $8,600 for Federal income tax purposes, and she applied her $800 overpayment for 2018 toward the 2019 tax liability. Compute Addison's Federal income tax payable (or refund) for 2019. In mak- ing the calculation, use the Tax Rate Schedule and disregard the application of the alternative minimum tax (AMT), which is not discussed until Chapter 12 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started