1. Problem 6-3 (Algorithmic) Accounting Methods (LO 6.2)

Geraldine is an accrual-basis taxpayer who has the following transactions during the current calendar tax year:

Accrued business income (except rent)	$409,600
Accrued business expenses (except rent)	307,200
Rental income on a building leased for the next 6 months, received on December 1	40,960
Prepaid rent expense for 6 months, paid on December 1	20,480

Calculate Geraldine's net income from her business for the current year.

If required, your answers to the nearest dollar.

Income:
	Other than rental	$fill in the blank
	Rental	fill in the blank
Expenses:
	Other than rental	fill in the blank
	Rental	fill in the blank
Net income		fill in the blank

Problem 6-8 Unearned Income of Minor Children and Certain Students (LO 6.4)

Brian and Kim have a 12-year-old child, Stan. For 2020, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. No election is made to include Stan's income on Brian and Kim's return.

Click here to access the income tax rate schedules.

a. For purposes of the tax on a child's unearned income, calculate Stan's taxable income. fill in the blank_______

b. Calculate Stan's net unearned income. fill in the blank _________

c. Calculate Stan's tax for 2020.

fill in the blank _________

Problem 6-9 Unearned Income of Minor Children and Certain Students (LO 6.4)

Brian and Kim have a 12-year-old child, Stan. For 2020, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500.

Click here to access the income tax rate schedules.

If there was no kiddie tax and Stan is taxed at his own rate, what would the tax on his income be? fill in the blank __________

Problem 6-17 (Algorithmic) The Nanny Tax (LO 6.7)

Sally hires a maid to work in her home for $750 per month. The maid is 25 years old and not related to Sally. During 2020, the maid worked 11 months for Sally.

Do not round immediate computations and round your final answers to two decimal places.

a. What is the amount of Social Security tax Sally must pay as the maid's employer? fill in the blank ___________

b. What is the amount of Medicare tax Sally must pay as the maid's employer?

Sally's employer's Medicare tax: fill in the blank ___________

c. What is the amount of Social Security and Medicare tax which must be withheld from the maid's wages?

Sally should withhold for Social Security and Medicare tax of: fill in the blank _________

Problem 6-19 (Algorithmic) Special Rules for High-Income Taxpayers (LO 6.8)

Rachel is single and has wages of $165,650 and dividend income of $99,390. She has no investment expenses.

Calculate the amount of the 3.8 percent net investment income tax she must pay. Round your answer to the nearest whole dollar. fill in the blank ___________