Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CARES Comprehensive Problem 6-60 (LO 6-1, LO 6-2, LO 6-3) (Algo) Jeremy and Alyssa Johnson have been married for five years and do not have

image text in transcribed

CARES Comprehensive Problem 6-60 (LO 6-1, LO 6-2, LO 6-3) (Algo) Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This year, the Johnsons received $271,000 of gross income. Assume CARES Act applies. a. Expenses associated with Jeremy's store include $44,000 in salary (and employment taxes) to employees, $49,800 of supplies, and $19,600 in rent and other administrative expenses. b. As a salesperson, Alyssa incurred $2,160 in travel expenses related to her employment that were not reimbursed by her employer. c. The Johnsons own a piece of raw land held as an investment. They paid $660 of real property taxes on the property and they incurred $280 of expenses in travel costs to see the property and to evaluate other similar potential investment properties. d. The Johnsons own a rental home. They incurred $8,660 of expenses associated with the property. e. Jeremy paid $4,660 for health insurance coverage for himself (not through an exchange). Alyssa was covered by health plans provided by her employer, but Jeremy is not eligible for the plan until next year. f. Jeremy paid $2,660 in self-employment taxes ($1,330 represents the employer portion of the self-employment taxes). g. Jeremy paid $5,320 in alimony and $3,240 in child support from his prior marriage (divorce decree executed in 2010). h. The Johnsons donated $2,160 to their favorite charity. Assume they itemize their deductions in 2020. Determine the Johnson's AGI in 2020 given the above information. Johnson's AGI

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

Advances In International Accounting Volume 20

Authors: J. Timothy Sale

1st Edition

0762313994, 9780762313990

More Books

Students also viewed these Accounting questions

Question

Be honest, starting with your application and rsum.

Answered: 1 week ago

Question

What factors affect occupational accidents?

Answered: 1 week ago