Homework Problem II Ryan Reynolds is a single parent living with his two daughters. His daughters are 14 years old and a 19 year- old that attends GCC. He had income and expenditures for the year as follows. $75,000 3,000 Salary Prizes won on the price is Right Interest income from: Bank account City of Glendale bonds Illegal income Inheritance received Gift from parent 1,000 4,000 5,000 50,000 10,000 Potential Itemized Deductions: Diamondbacks season tickets Food Interest expense on car loan Interest expense on home mortgage Property taxes paid (car and home) Charitable contributions Federal income tax withheld State income tax withheld Tuition and books for GCC 4,400 5,000 1,100 9,000 5,000 4,000 6,000 2,000 2,400 Compute the amount of: a) taxable income, b) income taxes, and amount of tax to be paid (refunded) Note: It is not acceptable to submit this page as homework. Prepare answer, in good form, on a separate sheet. X # ACC 111 Income Taxes - Page 14 Homework Problem II Ryan Reynolds is a single parent living with his two daughters. His daughters are 14 years old and a 19 year- old that attends GCC. He had income and expenditures for the year as follows. $75,000 3,000 Salary Prizes won on the price is Right Interest income from: Bank account City of Glendale bonds Illegal income Inheritance received Gift from parent 1,000 4,000 5,000 50,000 10,000 Potential Itemized Deductions: Diamondbacks season tickets Food Interest expense on car loan Interest expense on home mortgage Property taxes paid (car and home) Charitable contributions Federal income tax withheld State income tax withheld Tuition and books for GCC 4,400 5,000 1,100 9,000 5,000 4,000 6,000 2,000 2,400 Compute the amount of: a) taxable income, b) income taxes, and amount of tax to be paid (refunded) Note: It is not acceptable to submit this page as homework. Prepare answer, in good form, on a separate sheet. X # ACC 111 Income Taxes - Page 14