Question

Compute the requested amounts and place the answers in the spaces provided. Han and Leia Solo have been married for 24 years and have three children who qualify as their dependents (Jacen, 4; Jaina, 14; and Ben, 16). The couple received salary income of $354,600. They sold some stock they had owned for 4 years and had an $8,000 gain on the sale. They also received $3,000 of corporate bond interest and $6,400 of interest from Jabba City bonds. The Solo’s also cashed in a Certificate of Deposit early during the year and paid a $950 penalty on the early withdrawal. Additionally, Han (who teaches middle school) spent $875 on supplies and snacks for his classroom. The Solos accumulated $30,920 of itemized deductions and they had $31,550 withheld from their paychecks for federal income taxes.(Use the 2020 Tax Rates)

Gross Income-

Deductions FOR AGI-

Adjusted Gross Income-

Standard Deduction-

Itemized Deductions-

Taxable Income-

Tax Liability-

Amount Due OR Refund-

Use the table below to show what you did and did not include in Gross Income, Deductions and/or other items and your explanation. Feel free to add additional rows as necessary.

Answer 1

Answer: u Summarized the information and data provided in the question; Han and Leia solo have been married for 24 yos.... Item Amount Explanation salady 354,600 Salary income will be taxable. Long 8,000 will be taxed at gain preferential rate. Interest 3,000 Interest on cooperate bonds bonds only will be taxable and interest Ion municipal bonds is exempt. Gross income 365,6001 term eapital On Less: Penalty on early 950 Penalty on early withdrawal I withdrawal will be allowed as above. the line deduction. Educatoo's expense 250 Educator's expense is deductible up to $250 Adjusted gooss 3,614,400 Income Lesse Itemized. 30,920 max amnt of standard deduction Ideduction is $24,400 for married filling jointly which is lower I than the itemized

deduction is claimed Taxable income 13,33,480 Tax rate @3211) 106,714 Lesso withheld 31,550 tax Net payable $5,164 Please please kindly, up- vote Thank you