Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from

Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This year, the Johnsons received $276,000 of gross income.
Expenses associated with Jeremys store include $45,250 in salary (and employment taxes) to employees, $51,300 of supplies, and $20,100 in rent and other administrative expenses.
As a salesperson, Alyssa incurred $2,210 in travel expenses related to her employment that were not reimbursed by her employer.
The Johnsons own a piece of raw land held as an investment. They paid $710 of real property taxes on the property and they incurred $305 of expenses in travel costs to see the property and to evaluate other similar potential investment properties.
The Johnsons own a rental home. They incurred $8,710 of expenses associated with the property.
Jeremy paid $4,710 for health insurance coverage for himself (not through an exchange). Alyssa was covered by health plans provided by her employer, but Jeremy is not eligible for the plan until next year.
Jeremy paid $2,710 in self-employment taxes ($1,355 represents the employer portion of the self-employment taxes).
Jeremy paid $5,420 in alimony and $3,315 in child support from his prior marriage (divorce decree executed in 2010).
The Johnsons donated $2,210 to their favorite charity.
Determine the Johnson's AGI given the above information:
image text in transcribed
Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This year, the Johnsons received $276,000 of gross income. Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This year, the Johnsons received $276,000 of gross income

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

Step: 3

blur-text-image

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

Financial Accounting Oakton Community College Tools For Business Decision Making

Authors: Paul D. Kimmel ,Jerry J. Weygandt ,Donald E. Kieso

6th Edition

1118113632, 978-1118113639

More Books

Students also viewed these Accounting questions

Question

List the purpose of cross-validation of data.

Answered: 1 week ago