Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need Form 1040 and Schedules 1, A, and D and Form 8949. Thank you. Comprehensive Problem 6-2B Warner and Augustine Robins, both 33 years

I need Form 1040 and Schedules 1, A, and D and Form 8949. Thank you.

Comprehensive Problem 6-2B

Warner and Augustine Robins, both 33 years old, have been married for 9 years and have no dependents.

Warner is the president of Dragon Lady Corporation located in Macon. The Dragon Lady stock is owned 40 percent by Warner, 40 percent by Augustine, and 20 percent by Warner's father.

Warner and Augustine received the following tax documents: 1) W-2 Form 2) Form 1099-INT 3) Form 1098 4) Letter from Macon Museum of Arts regarding their charitable contribution. These items are located on separate tabs.

The Robins paid the following amounts (all can be substantiated):

General state sales tax $2,120
Auto loan interest $4,800
Medical insurance $11,345
Income tax preparation fee $750
Charitable contributions in cash:
Church $2,665
Tree Huggers Foundation (a qualified charity) $3,000
Central Georgia Technical University $5,000
Safe-deposit box $200

The tax basis for the donated painting is $25,000 and the painting has been owned by Warner and Augustine for 5 years.

Dragon Lady does not cover health insurance for its employees. In addition to Warner and Augustine's health insurance premiums shown above, Augustine required surgery which cost $6,654 for which only $3,002 was covered by insurance. Warner had to drive Augustine 150 miles each way to a surgical center.

On January 1, 2019, Warner sold land to Dragon Lady Corporation for $75,000. He acquired the land 5 years ago for $160,000. No Form 1099-B was filed for this transaction.

Dragon Lady Corporation does not have a qualified pension plan or Section 401(k) plan for its employees. Therefore, Warner deposited $12,000 ($6,000 each) into traditional IRA accounts for Augustine and himself (neither are covered by a qualified plan at work).

Required: Complete Warner and Augustine's Form 1040 and Schedules 1, A, and D and Form 8949.

  • Make realistic assumptions about any missing data.
  • The taxpayers did not have health insurance coverage for the entire year and they do not want to make a contribution to the presidential election campaign.
  • Enter all amounts as positive numbers, unless instructed otherwise.
  • If an amount box does not require an entry or the answer is zero, enter "0".
  • If required round any dollar amount to the nearest dollar.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Health Care Finance

Authors: William O. Cleverley, James O. Cleverley

8th Edition

1284094634, 978-1284094633

More Books

Students also viewed these Finance questions

Question

1. Encourage students to set a small-step goal for one subject.

Answered: 1 week ago

Question

Describe some variables used to measure the value added of HRM

Answered: 1 week ago

Question

Critically evaluate research on the HRMperformance relationship

Answered: 1 week ago