Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tim and Sarah Lawrence are married and file a joint return. Tims Social Security number is 123-45-6789, and Sarahs Social Security number is 111-11-1111. They

Tim and Sarah Lawrence are married and file a joint return. Tims Social Security number is 123-45-6789, and Sarahs Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Seans Social Security number is 123-45-6788, and Debras Social Security number is 123-45-6787. Tim is a self-employed businessperson (sole proprietor of an unincorporated business), and Sarah is a corporate executive. Tim has the following income and expenses from his business in 2021.

Gross income $325,000
Business expenses $201,000

Records related to Sarahs employment provide the following information.

Salary $130,000
Unreimbursed travel expenses (including $200 of meals) $1,600

Other pertinent information for the tax year includes the following.

image text in transcribed

Required:

Compute the Lawrences net Federal income tax payable or refund due for 2021.

Proceeds from sale of stock acquired on July 15, 2021 (cost $9,800 of $12,000 ), and sold on August 1, 2021 Proceeds from sale of stock acquired on September 18, 3,800 2020 (cost of \$5,000), and sold on October 5, 2021 Wages paid to full-time domestic worker for housekeeping 10,000 and child supervision Interest income received Total itemized deductions (not including any potential 27,900 deductions above) Federal income tax withheld Estimated Federal income tax payments 20,000 Proceeds from sale of stock acquired on July 15, 2021 (cost $9,800 of $12,000 ), and sold on August 1, 2021 Proceeds from sale of stock acquired on September 18, 3,800 2020 (cost of \$5,000), and sold on October 5, 2021 Wages paid to full-time domestic worker for housekeeping 10,000 and child supervision Interest income received Total itemized deductions (not including any potential 27,900 deductions above) Federal income tax withheld Estimated Federal income tax payments 20,000

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_2

Step: 3

blur-text-image_3

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

Financial Accounting Text Only

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

5th Edition

0006575404, 978-0006575405

More Books

Students also viewed these Accounting questions

Question

Question 1 (a2) What is the reaction force Dx in [N]?

Answered: 1 week ago

Question

What are the diff erences between groups and teams?

Answered: 1 week ago

Question

If you were Dans friend, what might you say to alter his behaviors?

Answered: 1 week ago