score on work to date: 24.11/50 Points 48.22 % 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 $153.000, and Sandy worked part time as a receptionist for a law firm eaming a salary of $30,000. John also does some Web design work on the side and reported revenues of $5,000 and associated expenses of $1.250. The Fergusons received $1,000 in qualified dividends and a $250 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 Roles. 2021 AMT exemption for reference. . + The Fergusons reported making the following payments during the year. State income taxes of $4,650. Federal tax withholding of $21.000 Alimony payments to John's former wife of $10.500 (divorced 12/31/2014). Child support payments for John's child with his former wife of $4,200. $12,300 of real property taxes. Sandy was relmbursed $650 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer. $3,500 to Kid Care day care center for Samantha's care while John and Sandy worked. $15,000 interest on their home mortgage ($400,000 acquisition debt). $3.150 Interest on a $42,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,500 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $500 and cost $2.500. rev. 10_21_2021_0C_CS-282339, 11_03_2021_OC_CS-284015. 12_09_2021_QC_CS-287406 . . References Section Break Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Algo) Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left x & fx B E F elf-Employment Income Jse the space below to calculate business income, self-employment taxes, and other related Items: Description Amount Computation (1) Revenues 5,000 (2) Expenses 1,250 3,750 (1)-(2) (3) Business income (loss) reported on Schedule (4) Net business income subject to self- emplovment tax (5) Self-employment tax 346,313 (3) x 92.35% Hint: Recall the wage base limit for social security taxes! (6) Deduction for one-half self- employment tax (7) Qualified business income Line (5) x 50% 3,750 (3) - (6) (8) Deduction for qualified business income + 5 7 B 9 0 1 Nm 34 35
