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Required information Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Algo) [The following information applies to the questions displayed
Required information Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Algo) [The following information applies to the questions displayed below] John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, John worked as a computer technician at a local university earning a salary of $152,400, and Sandy worked part time as a receptionist for a law firm earning a salary of $29.400, John also does some Web design work on the side and reported revenues of $4,400 and associated expenses of $950. The Fergusons received $880 in qualified dividends and a $220 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year Assume the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10. Tax Rate Schedule Dividends and Capital Gains Tax Rates. 2021 AMT exemption for reference The Fergusons reported making the following payments during the year . . . . . State income taxes of $4,500, Federal tax withholding of $21,000. Alimony payments to John's former wife of $10,200 (divorced 12/31/2014). Child support payments for John's child with his former wife of $4,140. $12.240 of real property taxes. Sandy was reimbursed $620 for employee business expenses she incurred She was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samantha's care while John and Sandy worked . $14,400 interest on their home mortgage ($400,000 acquisition debt).
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