Hello, I downloaded your question 9:79 about Dan and Cheryl. May I get assistance with this problem, do you have the solutions on an extra sheet or maybe I missed them on the download? I am fter any of the questions below if you have anything worked out on the problem.

1. Recognized capital gain or loss

2. Schedule A medical expenses after all limitations applied

3. Schedule A taxes (excluding home office, if any)

4. Total office-in-home expenses before any AGI limitation

5. Home-in-office depreciation included in total office-in-home expenses before any AGI limitation

6. Travel expenses included in employee business expenses before any AGI limitation

7. Automobile expenses, parking, and tolls included in employee business expenses before any AGI limitation

8. Schedule A charitable contribution

9. AGI

10. Taxable income

11. Tax on qualified dividends

12. Total federal income tax liability

Your final for this course is the completion of comprehensive problem I:9:79 found on page 9-61 of the text. Use the tax formula as a structure for your answer. You need not use a tax return form. You should not use a tax computation service for this problem completion, and you should not discuss the solution with your peers. This is your work. As a suggestion, you should break this problem into small parts, solve each part, do what you know, and come back to what you do not. Problem I:9:79 Dan and Cheryl are married, file a joint return, and have no children. Dan is a pharmaceutical salesman and Cheryl is a nurse at a local hospital. Dan's SSN is 400-20-1000 and Cheryl's SSN is 200-40-8000 and they reside at 2033 Palmetto Drive, Nashville, TN 28034. Dan is paid according to commissions from sales; however, his compensation is subject to withholding of income and payroll taxes. He also maintains an office in his home as the pharmaceutical company does not have an office in Nashville and when he is not traveling, Dan operates his business from his home office. During 2012, Dan earned total compensation from his job of $125,000, on which $20,000 of federal income taxes were withheld, $4,624 of OASDI, and $1,813 of Medicare taxes. No state income taxes were withheld. Cheryl earned a salary during 2012 of $45,400, on which federal taxes withheld were $5,000, OASDI of $1,907, and Medicare taxes of $658. During 2012, Dan and Cheryl had interest income from corporate bonds and bank accounts of $1,450 and qualified dividends from stocks of $5,950. Dan also actively trades stocks and had the following results for 2012: LTCG $4,900 LTCL (3,200) STCG 0 STCL (7,800) He had no capital loss carryovers from previous years. Dan does a considerable amount of travel in connection with his job. He uses his own car and is reimbursed $0.30 per business mile. During 2012, Dan drove his car a total of 38,000 miles (evenly throughout the year), of which 32,000 were business related. He also had businessrelated parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the following travel expenses while away from home during the year: Hotel $4,200 Meals 820 Entertainment of customers 1,080 Tips 100 Laundry and cleaning 150 Total $6,350 Dan was reimbursed for the travel expenses by his employer, pursuant to an accountable plan, in the amount of $5,080. Dan's expenses in connection with his office in the home were as follows: Office supplies $290 Telephone (separate line) 1,100 Utilities (entire house) 3,400 Homeowners insurance 600 Interest and property taxes (see below for totals) Repairs and maintenance (entire house) 800 Dan's office is 300 square feet and the total square footage of the house is 3,000 square feet. Dan and Cheryl purchased the house on June 12, 1998, for $280,000, of which $40,000 is attributable to the land. Cheryl incurred several expenses in connection with her nursing job. She paid $450 in professional dues, $200 in professional journals, and $350 for uniforms. Dan and Cheryl had the following other expenditures during the year: Health insurance premiums (after-tax) $ 4,400 Doctor bills 470 Real estate taxes on home 2,200 Personal property taxes 400 Mortgage interest 15,600 Charitable contributions - cash 9,000 Charitable contributions - GE stock owned for 5 years: FMV $12,000 Adjusted basis 2,000 Tax preparation fees 750 Compute Dan and Cheryl's income tax liability for 2012. Disregard the alternative minimum tax. Tax Problem for ACCT 3315 Fall 2016 Dixon 9-77: Dan and Cheryl are married, file a joint return, and have no children. Dan, age 45, is a pharmaceutical salesman and Cheryl, age 42, is a nurse at a local hospital. Dan's SSN is 400-20-1000 and Cheryl's SSN is 200-40-8000 and they reside at 2033 Palmetto Drive, Nashville, TN 28034. Dan is paid according to commissions from sales; however, his compensation is subject to withholding of income and payroll taxes. He also maintains an office in his home as the pharmaceutical company does not have an office in Nashville and when he is not traveling, Dan operates his business from his home office. During 2016, Dan earned total compensation from his job of $125,000, on which $18,000 of federal income taxes were withheld, $7,347 of OASDI, and $1,813 of Medicare taxes. State income taxes of $4,000 were withheld. Cheryl earned a salary during 2016 of $45,400, on which federal taxes withheld were $4,000, OASDI of $2,815, and Medicare taxes of $658. During 2016, Dan and Cheryl had interest income from corporate bonds and bank accounts of $1,450 and qualified dividends from stocks of $5,950. Dan also actively trades stocks and had the following results for 2016: LTCG $4,900 LTCL (3,200) STCG 0 STCL (7,800) He had no capital loss carryovers from previous years. Dan does a considerable amount of travel in connection with his job. He uses his own car and is reimbursed $0.30 per business mile. During 2016, Dan drove his car a total of 38,000 miles, of which 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the following travel expenses while away from home during the year: Hotel $4,200 Meals $820 Entertainment of customers $1,080 Tips $100 Laundry and cleaning $150 Total $6,350 Dan was reimbursed for the travel expenses by his employer, pursuant to an accountable plan, in the amount of $5,080 1. 2. 3. 4. 5. Recognized capital gain or loss Schedule A medical expenses after all limitations applied Schedule A taxes (excluding home office, if any) Total office-in-home expenses before any AGI limitation Home-in-office depreciation included in total office-in-home expenses before any AGI limitation 6. Travel expenses included in employee business expenses before any AGI limitation 7. Automobile expenses, parking, and tolls included in employee business expenses before any AGI limitation 8. Schedule A charitable contribution 9. AGI 10. Taxable income 11. Tax on qualified dividends 12. Total federal income tax liability 13-64: Betty, whose tax rate is 33%, is in the business of breeding and racing horses. Except for the transactions below, she has no other sales or exchanges and she has no unrecaptured net Sec. 1231 losses. Consider the following transactions that occur during the year: A building with an adjusted basis of $300,000 is destroyed by fire. Insurance proceeds of $500,000 are received, but Betty does not plan to replace the building. The building was built 12 years ago at a cost of $430,000 and used to provide lodging for her employees. Straight-line depreciation has been used. Four acres of the farm are condemned by the state to widen the highway and Betty receives $50,000. The land was inherited from her mother 15 years ago when its FMV was $15,000. Her mother purchased the land for $10,300. Betty does not plan to purchase additional land. A racehorse purchased four years ago for $200,000 was sold for $550,000. Total depreciation allowed using the straight-line method amounts to $160,000. Equipment purchased three years ago for $200,000 is exchanged for $100,000 of IBM common stock. The adjusted basis of the equipment is $120,000. If straight-line depreciation had been used, the adjusted basis would be $152,000. An uninsured pony, with an adjusted basis of $20,000 and FMV of $35,000, that her daughter uses only for personal use is injured while attempting a jump. Because of the injury, the uninsured pony has to be destroyed by a veterinarian. 13. Question a- What amount of Sec. 1245 ordinary income must be recognized? 14. Question b- What amount of Sec. 1250 ordinary income must be recognized? 15. Question c- Will the loss resulting from the destruction of her daughter's pony be used to determine net Sec. 1231 gains or losses? 16. Question d. For purposes of computing a Section 1231 gain or loss, INCLUDE any unrecaptured Section 1250 gain, if any, in a Section 1231 gain, if any. Per the IRC, an unrecaptured Section 1250 gain is part of the Section 1231 gain, but is taxed at a higher maximum tax rate of 25%. 17. Question e- After all of the netting of gains or losses is completed, will the gain resulting from the involuntary conversion of the building be treated as LTCG? 18. Question f- What is the amount of her Sec. 1231 gain that is unrecaptured Sec. 1250 gain? 10-48: John and Ellen Brite (SSN 000-00-1111 and 000-00-2222, respectively) are married and file a joint return. They have no dependents. John owns an unincorporated specialty electrical lighting retail store, Brite-On. BriteOn had the following assets on January 1, 2015: Assets Cost Old store building purchased April 1, 2000 $100,000 Equipment (7-year recovery) purchased January 10, 2010 30,000 Inventory valued using FIFO method: 4,000 light bulbs $5/bulb Brite-On purchased a competitor's store on March 1, 2015, for $107,000. The purchase price included the following: New store building $60,000 (FMV) Land 18,000 (FMV) Equipment (5-year recovery) 11,000 (FMV) Inventory: 3,000 light bulbs $ 6/bulb (cost) On June 30, 2015, Brite-On sold the 7-year recovery period equipment for $12,000. Brite-On leased a $30,500 car for $500/month beginning on January 1, 2015. The car is used 100% for business and was driven 14,000 miles during the year. Brite-On sold 8,000 light bulbs at a price of $15/bulb during the year. Also, Brite-On made additional purchases of 4,000 light bulbs in August 2015 at a cost of $7/bulb. BriteOn had the following revenues (in addition to the sales of light bulbs) and additional expenses: Service revenues $64,000 Interest expense on business loans $4,000 Auto expenses (gas, oil, etc.) $3,800 Taxes and licenses $3,300 Utilities $2,800 Salaries $24,000 John and Ellen also had some personal expenses: Medical bills $4,500 Real property taxes 3,800 State income taxes 4,000 Home mortgage interest 5,000 Charitable contributions (cash) 600 The Brites received interest income on a bank savings account of $275. John and Ellen made four $5,000 quarterly estimated tax payments. For self-employment tax purposes, assume John spent 100% of his time at the store while Ellen spends no time at the store. Additional Facts: Equipment acquired in 2010: The Brites elected out of bonus depreciation and did not elect Sec. 179. Equipment acquired in 2015: The Brites elected Sec. 179 to expense the cost of the 5-year equipment but elected out of bonus depreciation. Assume that the lease inclusion rules require that Brite-On reduce its deductible lease expense by $8. Compute the Brite's taxable income and balance due or refund for 2015. 19. COGS 20. Depreciation including Section 179 deduction 21. Deductible lease expense (reduced by lease inclusion) 22. Recognized gain on sale of 7 year equipment 23. Total itemized deductions after AGI limitations (assume AGI is 80,326) 24. Income tax per 2015 MFJ rate schedule in this semester's textbook inside cover. To be clear, we are using the 2015 tax rates on the computed taxable income. Also use all other information required from the inside cover of this semester's textbook for standard deduction, personal and dependency exemption and phase-outs. 25. Self-employment tax (see discussion 7-11 and 7-12 and Chapter 14). Use inside cover of textbook to compute social Security -2015 and Self-Employment Tax -2015 rates and dollar limitations. Tax Problem for ACCT 3315 Fall 2016 Dixon 9-77: Dan and Cheryl are married, file a joint return, and have no children. Dan, age 45, is a pharmaceutical salesman and Cheryl, age 42, is a nurse at a local hospital. Dan's SSN is 400-20-1000 and Cheryl's SSN is 200-40-8000 and they reside at 2033 Palmetto Drive, Nashville, TN 28034. Dan is paid according to commissions from sales; however, his compensation is subject to withholding of income and payroll taxes. He also maintains an office in his home as the pharmaceutical company does not have an office in Nashville and when he is not traveling, Dan operates his business from his home office. During 2016, Dan earned total compensation from his job of $125,000, on which $18,000 of federal income taxes were withheld, $7,347 of OASDI, and $1,813 of Medicare taxes. State income taxes of $4,000 were withheld. Cheryl earned a salary during 2016 of $45,400, on which federal taxes withheld were $4,000, OASDI of $2,815, and Medicare taxes of $658. During 2016, Dan and Cheryl had interest income from corporate bonds and bank accounts of $1,450 and qualified dividends from stocks of $5,950. Dan also actively trades stocks and had the following results for 2016: LTCG $4,900 LTCL (3,200) STCG 0 STCL (7,800) He had no capital loss carryovers from previous years. Dan does a considerable amount of travel in connection with his job. He uses his own car and is reimbursed $0.30 per business mile. During 2016, Dan drove his car a total of 38,000 miles, of which 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the following travel expenses while away from home during the year: Hotel $4,200 Meals $820 Entertainment of customers $1,080 Tips $100 Laundry and cleaning $150 Total $6,350 Dan was reimbursed for the travel expenses by his employer, pursuant to an accountable plan, in the amount of $5,080 1. 2. 3. 4. 5. Recognized capital gain or loss Schedule A medical expenses after all limitations applied Schedule A taxes (excluding home office, if any) Total office-in-home expenses before any AGI limitation Home-in-office depreciation included in total office-in-home expenses before any AGI limitation 6. Travel expenses included in employee business expenses before any AGI limitation 7. Automobile expenses, parking, and tolls included in employee business expenses before any AGI limitation 8. Schedule A charitable contribution 9. AGI 10. Taxable income 11. Tax on qualified dividends 12. Total federal income tax liability 13-64: Betty, whose tax rate is 33%, is in the business of breeding and racing horses. Except for the transactions below, she has no other sales or exchanges and she has no unrecaptured net Sec. 1231 losses. Consider the following transactions that occur during the year: A building with an adjusted basis of $300,000 is destroyed by fire. Insurance proceeds of $500,000 are received, but Betty does not plan to replace the building. The building was built 12 years ago at a cost of $430,000 and used to provide lodging for her employees. Straight-line depreciation has been used. Four acres of the farm are condemned by the state to widen the highway and Betty receives $50,000. The land was inherited from her mother 15 years ago when its FMV was $15,000. Her mother purchased the land for $10,300. Betty does not plan to purchase additional land. A racehorse purchased four years ago for $200,000 was sold for $550,000. Total depreciation allowed using the straight-line method amounts to $160,000. Equipment purchased three years ago for $200,000 is exchanged for $100,000 of IBM common stock. The adjusted basis of the equipment is $120,000. If straight-line depreciation had been used, the adjusted basis would be $152,000. An uninsured pony, with an adjusted basis of $20,000 and FMV of $35,000, that her daughter uses only for personal use is injured while attempting a jump. Because of the injury, the uninsured pony has to be destroyed by a veterinarian. 13. Question a- What amount of Sec. 1245 ordinary income must be recognized? 14. Question b- What amount of Sec. 1250 ordinary income must be recognized? 15. Question c- Will the loss resulting from the destruction of her daughter's pony be used to determine net Sec. 1231 gains or losses? 16. Question d. For purposes of computing a Section 1231 gain or loss, INCLUDE any unrecaptured Section 1250 gain, if any, in a Section 1231 gain, if any. Per the IRC, an unrecaptured Section 1250 gain is part of the Section 1231 gain, but is taxed at a higher maximum tax rate of 25%. 17. Question e- After all of the netting of gains or losses is completed, will the gain resulting from the involuntary conversion of the building be treated as LTCG? 18. Question f- What is the amount of her Sec. 1231 gain that is unrecaptured Sec. 1250 gain? 10-48: John and Ellen Brite (SSN 000-00-1111 and 000-00-2222, respectively) are married and file a joint return. They have no dependents. John owns an unincorporated specialty electrical lighting retail store, Brite-On. BriteOn had the following assets on January 1, 2015: Assets Cost Old store building purchased April 1, 2000 $100,000 Equipment (7-year recovery) purchased January 10, 2010 30,000 Inventory valued using FIFO method: 4,000 light bulbs $5/bulb Brite-On purchased a competitor's store on March 1, 2015, for $107,000. The purchase price included the following: New store building $60,000 (FMV) Land 18,000 (FMV) Equipment (5-year recovery) 11,000 (FMV) Inventory: 3,000 light bulbs $ 6/bulb (cost) On June 30, 2015, Brite-On sold the 7-year recovery period equipment for $12,000. Brite-On leased a $30,500 car for $500/month beginning on January 1, 2015. The car is used 100% for business and was driven 14,000 miles during the year. Brite-On sold 8,000 light bulbs at a price of $15/bulb during the year. Also, Brite-On made additional purchases of 4,000 light bulbs in August 2015 at a cost of $7/bulb. BriteOn had the following revenues (in addition to the sales of light bulbs) and additional expenses: Service revenues $64,000 Interest expense on business loans $4,000 Auto expenses (gas, oil, etc.) $3,800 Taxes and licenses $3,300 Utilities $2,800 Salaries $24,000 John and Ellen also had some personal expenses: Medical bills $4,500 Real property taxes 3,800 State income taxes 4,000 Home mortgage interest 5,000 Charitable contributions (cash) 600 The Brites received interest income on a bank savings account of $275. John and Ellen made four $5,000 quarterly estimated tax payments. For self-employment tax purposes, assume John spent 100% of his time at the store while Ellen spends no time at the store. Additional Facts: Equipment acquired in 2010: The Brites elected out of bonus depreciation and did not elect Sec. 179. Equipment acquired in 2015: The Brites elected Sec. 179 to expense the cost of the 5-year equipment but elected out of bonus depreciation. Assume that the lease inclusion rules require that Brite-On reduce its deductible lease expense by $8. Compute the Brite's taxable income and balance due or refund for 2015. 19. COGS 20. Depreciation including Section 179 deduction 21. Deductible lease expense (reduced by lease inclusion) 22. Recognized gain on sale of 7 year equipment 23. Total itemized deductions after AGI limitations (assume AGI is 80,326) 24. Income tax per 2015 MFJ rate schedule in this semester's textbook inside cover. To be clear, we are using the 2015 tax rates on the computed taxable income. Also use all other information required from the inside cover of this semester's textbook for standard deduction, personal and dependency exemption and phase-outs. 25. Self-employment tax (see discussion 7-11 and 7-12 and Chapter 14). Use inside cover of textbook to compute social Security -2015 and Self-Employment Tax -2015 rates and dollar limitations