Required informatlon [The following information applies to the questions displayed below] Diana and Ryan Workman were married on January 1 of last year. Ryan has an elght-year-old son, Jorge, from his previous marrlage. Dlana works as a computer programmer at Datafile Incorporated (Dl) earning a salary of $107,000. Ryan is selfemployed and runs a day care center. The Workmans reported the followng financlal information pertalning to thelr actlvitles during the current year. a. Diana earned a $107,000 salary for the year. b. Diana borrowed $14,200 from Dl to purchase a car. Dl charged her 2 percent interest ($284) on the loan, which Diana paid on December 31 . Dl would have charged Dlana $940 if interest had been calculated at the applicable federal interest rate. Assume that tax avoldance was not a motive for the loan. c. Ryan recelved $3,100 in alimony and $6,700 in child support payments from his former spouse. They divorced in 2016 . d. Ryan won a $1,120 cash prize at his church-sponsored Bingo game. e. The Workmans recelved $1,600 of interest from corporate bonds and $1,350 of Interest from a municipal bond. Ryan owned these bonds before he marrled Dalna. f. The couple bought 94 shares of ABC Incorporated stock for $62 per share on July 2 . The stock was worth $91 a share on December 31. The stock pald a dividend of $1 per share on December 1 . g. Ryan's father passed away on April. 14 . He inherited cash of $72000 from his father and his baseball card collection, valued at $4,200. As the beneficiary of his father's life insurance policy, Ryan also recelved $172,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $3,400. 1. Diana recelved $4,800 cash for reaching 10 years of continuous service at. Dl. J. Dlana was hit and injured by a drunk drlver while crossing a street at a crosswalk. she was unable to work for a month. She recelved $10,400 from her disability insurance. Dl pald the premlums for Dlana, but it reported the amount of the premiums as compensation to Diana on her year-end W-2. k. The drunk driver who hit Dlana in part (J) was required to pay her $4,200 medical costs, $3,700 for the emotlonal trauma she suffered from the accident, and $9.400 for punitive damages. I. For meeting her performance goals this year, Diana was informed on December 27 that she would recelve a $7,200 yearend bonus. Di (located in Houston, Texas) malled Diana's bonus check from its payroll processing center (Tampa, Flonda) on December 28 . Dlana didn't recelve the check at home untill January 2. m. Ryan is a 10 percent owner of MNO Incorporated, a Subchapter S corporation. The company reported ordinary business income for the year of $136,000. Ryan acquired the MNO stock two years ago. n. Ryan's day care business collected $145,000 in revenues. In addition, customers owed him $14,000 at year-end. During the year, Ryan spent $16,500 for supplies, $12500 for utilitles, $37,000 for rent, and $1,600 for miscellaneous expenses. One customer gave him use of thelr vacation home for a week (worth $13.500 ) in exchange for Ryan allowing their child to attend the day care center free of charge. Ryan accounts for his business activitues using the cash method of accounting. o. Diana's employer pays the couple's annual health Insurance premiums of $16,500 for a qualified plan. 1. Assuming the Workmans file a joint tax return, determine thelr gross income minus expenses on the day care business (this is called total income on the Form 1040 . 3. Assuming the Workmans ive in Calfornia, a community property state, and that Dlana and Ryan file separately, what is Dlana's gross Income minus expenses on the day care business? Required informatlon [The following information applies to the questions displayed below] Diana and Ryan Workman were married on January 1 of last year. Ryan has an elght-year-old son, Jorge, from his previous marrlage. Dlana works as a computer programmer at Datafile Incorporated (Dl) earning a salary of $107,000. Ryan is selfemployed and runs a day care center. The Workmans reported the followng financlal information pertalning to thelr actlvitles during the current year. a. Diana earned a $107,000 salary for the year. b. Diana borrowed $14,200 from Dl to purchase a car. Dl charged her 2 percent interest ($284) on the loan, which Diana paid on December 31 . Dl would have charged Dlana $940 if interest had been calculated at the applicable federal interest rate. Assume that tax avoldance was not a motive for the loan. c. Ryan recelved $3,100 in alimony and $6,700 in child support payments from his former spouse. They divorced in 2016 . d. Ryan won a $1,120 cash prize at his church-sponsored Bingo game. e. The Workmans recelved $1,600 of interest from corporate bonds and $1,350 of Interest from a municipal bond. Ryan owned these bonds before he marrled Dalna. f. The couple bought 94 shares of ABC Incorporated stock for $62 per share on July 2 . The stock was worth $91 a share on December 31. The stock pald a dividend of $1 per share on December 1 . g. Ryan's father passed away on April. 14 . He inherited cash of $72000 from his father and his baseball card collection, valued at $4,200. As the beneficiary of his father's life insurance policy, Ryan also recelved $172,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $3,400. 1. Diana recelved $4,800 cash for reaching 10 years of continuous service at. Dl. J. Dlana was hit and injured by a drunk drlver while crossing a street at a crosswalk. she was unable to work for a month. She recelved $10,400 from her disability insurance. Dl pald the premlums for Dlana, but it reported the amount of the premiums as compensation to Diana on her year-end W-2. k. The drunk driver who hit Dlana in part (J) was required to pay her $4,200 medical costs, $3,700 for the emotlonal trauma she suffered from the accident, and $9.400 for punitive damages. I. For meeting her performance goals this year, Diana was informed on December 27 that she would recelve a $7,200 yearend bonus. Di (located in Houston, Texas) malled Diana's bonus check from its payroll processing center (Tampa, Flonda) on December 28 . Dlana didn't recelve the check at home untill January 2. m. Ryan is a 10 percent owner of MNO Incorporated, a Subchapter S corporation. The company reported ordinary business income for the year of $136,000. Ryan acquired the MNO stock two years ago. n. Ryan's day care business collected $145,000 in revenues. In addition, customers owed him $14,000 at year-end. During the year, Ryan spent $16,500 for supplies, $12500 for utilitles, $37,000 for rent, and $1,600 for miscellaneous expenses. One customer gave him use of thelr vacation home for a week (worth $13.500 ) in exchange for Ryan allowing their child to attend the day care center free of charge. Ryan accounts for his business activitues using the cash method of accounting. o. Diana's employer pays the couple's annual health Insurance premiums of $16,500 for a qualified plan. 1. Assuming the Workmans file a joint tax return, determine thelr gross income minus expenses on the day care business (this is called total income on the Form 1040 . 3. Assuming the Workmans ive in Calfornia, a community property state, and that Dlana and Ryan file separately, what is Dlana's gross Income minus expenses on the day care business