Claire is a flight attendant for Western American Airlines ( WAA ) , where she earned $ 57, 000 in salary . WAS withheld federal income tax of $ 6 . 375 , state income tax of $ 1 , 800 , LOS Angeles city income tax of $ 675 , Social Security tax of $ 3. 600 , and Medicare tax of $ 825 . Phillip and Claire received $ 300 of interest from State Savings Bank on a joint account . They also received a qualified dividend of $ 395 on jointly owned stock in Xila Corporation . Phillip's full -time real estate business is named " Phillip Dunphy Realty ." His business is located at $45 Grove Street . LOS Angeles , California 90018 , and his employer identification number is 93 - 3489868 .\\ Phillip's gross receipts during the year were $ 7:30 , 000 . Phillip uses the cash method of accounting for his business . Phillip's business expenses are as follows : Advertising $ 5, 000 Professional dues Professional journals 200 Employee Wages 40, 000 Insurance on office contents 1 , 120 Accounting Services 2, 100 Miscellaneous office EXPENSE* 500 Utilities and telephone 3. 360 Payroll taxes 3.600 Depreciation* To be calculated On March 20 , Phillip moved his business out of the old offices at 1103 Allium Lane into a newly* constructed and equipped office on Grove Street . Phillip sold the old office building and all its furnishings . Fhillip's expenditures for the new office building are as follows :" Date Acquired ASSET\\ Cost 3/20 Land $ 300, 000 3/20 Office building 2.500, 000 3/20 Furniture* 200, 000 4 /1 Computer system 350, 000