Question

Accounting 240 Income Tax Homework Problem II. Mila Kunis is a single parent living with her two daughters, whom she provides all support. she had income and expenditures for the year as followed:

Homework Problem II Mila Kunis is a single parent living with her two daughters, whom she provides all support. Her daughters are age 12 and 19 years old, with the eldest attending GCC During the past year, her investments have appreciated from a cost of $20,000 to a year-end value of $22,000. She had income and expenditures for the year as follows. Salary Prizes won on Wheel of Fortune Interest income from: $76,000 3,000 Bank account City of Mesa bonds Illegal income Inheritance received Gift from parent contribution to Roth 1.R.A. 1,000 2,000 8,000 40,000 10,000 5, 000 Potential Itemized Deductions: Diamondbacks season tickets Food Interest expense on car loan Interest expense on home mortgage Property taxes paid (car and home) Charitable contributions Federal income tax withheld State income tax withheld Tuition and books for GCC 4, 400 5, 000 1,200 6,000 2,000 2,000 7,000 3,000 3,200 Compute the amount of: a) taxable income, b) income taxes, and c) amount of tax to be paid (refunded) Note: It is not acceptable to submit this page as homework. Prepare answer, in good form, on a separate sheet ACC 212 / 240 Income Taxes Page 17

Answer 1

solution :-

now we have to compute the taxable interest

particulars	amount
salaries	85000
speaking fees earned	0
Interest amount from bank	2,000
Interest amount from maricopa college	0
Amount received	0
Total amount of Barack= 85,000 + 2,000	87,000
Taxable income of Barack = $ 87,000

Taxable income of Michelle Obama :

Particulars	Amount $
Contribution to traditional I.R.A	3000
Arizona seasonal tickets	0
Food cost	0
Interest of credit card	1000
Expenses on home mortage interes	11,000
Property tax paid	2,500
Charitable amount	2,000

sum of the amount of him = 22300

Taxable income = Total income of Barack - Total income of Michelle Obama = 64,700.

(b) now we deduce the amount f income taxes =$ 64700

Income tax = 64700 * 15 % = $ 9705

(c) now we have to deduce the tax to be paid Amount of tax remaining = $ 9705

particulars	Amount
Amount of tax remaining	$ 9705
Less:Federal income tax	$ 3000
less:State income tax Pay	$ 1000
Net value	$5705

hence the amount of tax payable  = $5705.