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download the (f1040) and (f1040s1)Tax Form and enter the required values in the appropriate fields. [The following information applies to the questions displayed below. Diana
download the (f1040) and (f1040s1)Tax Form and enter the required values in the appropriate fields.
[The following information applies to the questions displayed below. Diana and Ryan Workman were married on January 1 of last year. Diana has an eight-year-old son, Jorge, from her previous marriage. Ryan works as a computer programmer at Datafile Inc. (DI) earning a salary of $96.000. Diana is self-employed and runs a day care center. The Workmans reported the following financial information pertaining to their activities during the current year. a. Ryan earned a $96.000 salary for the year. b. Ryan borrowed $12,000 from Dl to purchase a car. Dl charged him 2 percent interest ($240) on the loan, which Ryan paid on December 31. DI would have charged Ryan $720 if interest had been calculated at the applicable federal interest rate. Assume that tax avoidance was not a c. Diana received $2,000 in alimony and $4,500 in child support payments from her former husband. They divorced in 2016. d. Diana won a $900 cash prize at her church-sponsored Bingo game. e. The Workmans received $500 of interest from corporate bonds and $250 of interest from a municipal bond. Diana owned these bonds before she married Ryan. f. The couple bought 50 shares of ABC Inc. stock for $40 per share on July 2. The stock was worth $47 a share on December 31. The stock paid a dividend of $1 per share on December 1. g. Diana's father passed away on April 14. She inherited cash of $50,000 from her father and his baseball card collection, valued at $2,000. As the beneficiary of her father's life insurance policy, Diana also received $150,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $1,200. 1. Ryan received $400 cash for reaching 10 years of continuous service at DI. j. Ryan was hit and injured by a drunk driver while crossing a street at a crosswalk. He was unable to work for a month. He received $6,000 from his disability insurance. Dl paid the premiums for Ryan, but they reported the amount of the premiums as compensation to Ryan on his year-end W-2. k. The drunk driver who hit Ryan in part () was required to pay his $2,000 medical costs, $1,500 for the emotional trauma he suffered from the accident, and $5,000 for punitive damages. 1. For meeting his performance goals this year, Ryan was informed on December 27 that he would receive a $5,000 year-end bonus. DI (located in Houston, Texas) mailed Ryan's bonus check from its payroll processing center (Tampa, Florida) on December 28. Ryan didn't receive the check at his home until January 2. m. Diana is a 10 percent owner of MNO Inc., a Subchapter S corporation. The company reported ordinary business income for the year of $92,000. Diana acquired the MNO stock two years ago. n. Diana's day care business collected $35,000 in revenues. In addition, customers owed her $3,000 at year-end. During the year, Diana spent $5,500 for supplies, $1,500 for utilities, $15,000 for rent, and $500 for miscellaneous expenses. One customer gave her use of his vacation home for a week (worth $2,500) in exchange for Diana allowing his child to attend the day care center free of charge. Diana accounts for her business activities using the cash method of accounting. o. Ryan's employer pays the couple's annual health insurance premiums of $5,500 for a qualified plan. [The following information applies to the questions displayed below. Diana and Ryan Workman were married on January 1 of last year. Diana has an eight-year-old son, Jorge, from her previous marriage. Ryan works as a computer programmer at Datafile Inc. (DI) earning a salary of $96.000. Diana is self-employed and runs a day care center. The Workmans reported the following financial information pertaining to their activities during the current year. a. Ryan earned a $96.000 salary for the year. b. Ryan borrowed $12,000 from Dl to purchase a car. Dl charged him 2 percent interest ($240) on the loan, which Ryan paid on December 31. DI would have charged Ryan $720 if interest had been calculated at the applicable federal interest rate. Assume that tax avoidance was not a c. Diana received $2,000 in alimony and $4,500 in child support payments from her former husband. They divorced in 2016. d. Diana won a $900 cash prize at her church-sponsored Bingo game. e. The Workmans received $500 of interest from corporate bonds and $250 of interest from a municipal bond. Diana owned these bonds before she married Ryan. f. The couple bought 50 shares of ABC Inc. stock for $40 per share on July 2. The stock was worth $47 a share on December 31. The stock paid a dividend of $1 per share on December 1. g. Diana's father passed away on April 14. She inherited cash of $50,000 from her father and his baseball card collection, valued at $2,000. As the beneficiary of her father's life insurance policy, Diana also received $150,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $1,200. 1. Ryan received $400 cash for reaching 10 years of continuous service at DI. j. Ryan was hit and injured by a drunk driver while crossing a street at a crosswalk. He was unable to work for a month. He received $6,000 from his disability insurance. Dl paid the premiums for Ryan, but they reported the amount of the premiums as compensation to Ryan on his year-end W-2. k. The drunk driver who hit Ryan in part () was required to pay his $2,000 medical costs, $1,500 for the emotional trauma he suffered from the accident, and $5,000 for punitive damages. 1. For meeting his performance goals this year, Ryan was informed on December 27 that he would receive a $5,000 year-end bonus. DI (located in Houston, Texas) mailed Ryan's bonus check from its payroll processing center (Tampa, Florida) on December 28. Ryan didn't receive the check at his home until January 2. m. Diana is a 10 percent owner of MNO Inc., a Subchapter S corporation. The company reported ordinary business income for the year of $92,000. Diana acquired the MNO stock two years ago. n. Diana's day care business collected $35,000 in revenues. In addition, customers owed her $3,000 at year-end. During the year, Diana spent $5,500 for supplies, $1,500 for utilities, $15,000 for rent, and $500 for miscellaneous expenses. One customer gave her use of his vacation home for a week (worth $2,500) in exchange for Diana allowing his child to attend the day care center free of charge. Diana accounts for her business activities using the cash method of accounting. o. Ryan's employer pays the couple's annual health insurance premiums of $5,500 for a qualified planStep by Step Solution
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