Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John Fuji (birthdate June 6, 1979) moved from California to Washington in December 2015. He lives at 468 Cameo Street, Yakima, WA 98901. John's Social

John Fuji (birthdate June 6, 1979) moved from California to Washington in December 2015. He lives at 468 Cameo Street, Yakima, WA 98901. John's Social Security number is 571-78-5974 and he is single. His earnings and income tax withholding for 2016 for his job as a manager at a Washington apple-processing plant are:

Earnings from the Granny Smith Apple Co. $76,500
Federal income tax withheld 9,700
State income tax withheld 0

John's other income includes interest on a Certificate of Deposit at Braeburn National Bank of $1,297. Also, he paid $615 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075).

During 2016, John paid the following amounts (all of which can be substantiated):

Home mortgage interest $7,775
Auto loan interest 1,575
Credit card interest 655
State sales tax 1,167
Property taxes on personal residence 2,083
Unreimbursed hospital bills 5,250
Doctor bills 2,550
Other deductible medical expenses 760
Income tax preparation fee 500
Job-hunting expenses 925
Cash charitable donation to the Jonagold Research Center 500

In July 2016, someone broke into John's house and stole a coin collection. The collection had a fair market value of $11,400 and a tax basis to John of $4,660. The collection was uninsured.

Click here to access the tax table to use for this problem.

Required:

Complete John's federal tax return for 2016. Use Form 1040, Schedule A, Schedule B, and Form 4684, to complete this tax return. Make realistic assumptions about any missing data.

Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required round your answers 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

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

Information System Audit How To Control The Digital Disruption

Authors: Philippe Peret

1st Edition

1032136162, 978-1032136165

More Books

Students also viewed these Accounting questions