Homework Problem III John and Chrissy Legend, a married couple with four daughters (twins age 15, an 18 year old freshman at GCC and the oldest is 23 and a graduate student at ASU West), have income and expenditures for the year as follows. They file a joint return. $85,000 10,000 Salaries ($60,000 and $25,000) Speaking fees earned Interest income from: Bank account Maricopa Community College bonds Inheritance received Gift from parents Contribution to Traditional I.R.A. (401k) 2,000 3,000 50,000 20,000 3,000 Potential Itemized Deductions: Arizona Cardinals season tickets 4,000 Food 6,000 Interest expense on credit cards 1,000 Interest expense on home mortgage 11,000 Interest expense on car loans 2,000 Property taxes paid (cars and home) 2,500 Charitable contributions 4,000 Federal income tax withheld 2,000 State income tax withheld 1,000 Tuition and books paid to: GCC 3,200 ASU 9,000 Compute the amount of: a) taxable income, b) income taxes, and c) 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. IRS ACC 212 / 240 Income Taxes - Page 18 Homework Problem III John and Chrissy Legend, a married couple with four daughters (twins age 15, an 18 year old freshman at GCC and the oldest is 23 and a graduate student at ASU West), have income and expenditures for the year as follows. They file a joint return. $85,000 10,000 Salaries ($60,000 and $25,000) Speaking fees earned Interest income from: Bank account Maricopa Community College bonds Inheritance received Gift from parents Contribution to Traditional I.R.A. (401k) 2,000 3,000 50,000 20,000 3,000 Potential Itemized Deductions: Arizona Cardinals season tickets 4,000 Food 6,000 Interest expense on credit cards 1,000 Interest expense on home mortgage 11,000 Interest expense on car loans 2,000 Property taxes paid (cars and home) 2,500 Charitable contributions 4,000 Federal income tax withheld 2,000 State income tax withheld 1,000 Tuition and books paid to: GCC 3,200 ASU 9,000 Compute the amount of: a) taxable income, b) income taxes, and c) 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. IRS ACC 212 / 240 Income Taxes - Page 18