Question Details

ACCT 553
WEEK 1
Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $12,250 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2012?
Compute Marie's taxable income for 2012, assuming she is single and claims two dependent children. Her adjusted gross income is $70,000, and she has itemized deductions of $9,000
Compute Stanley's taxable income for 2012, assuming he has $1,000 in wages from working in a grocery store and $2,000 in interest income from some bonds he owns. Stanley, age 16, is claimed as a dependent on his parents' return.
Mr. Z, a non-dealer, sold assets on an installment plan. Determine Mr. Z's gross income for 2012. Relevant data include:
Year	Installment Sales	Gross Profit	2012 Collections
2010	$200,000	$50,000	$25,000
2011	300,000	81,000	80,000
2012	400,000	96,000	125,000

Comprehensive Problem. Bill is a cash-basis, calendar-year taxpayer. Which of the following December items result in gross income or deductions for the current year?
a. Check received for December rent, $700, not deposited until January 4. Gross Incomefor the current year.
b. Check for $1,100 to pay Bill's state income taxes mailed December 28, cashed January 7. 
c. Cash received in the amount of $500 for services to be rendered the following year. 
d. Interest of $800 credited to his savings account, added to Bill's account balance
e. Check received for January rent, $700, deposited on January 9. 
for the current year
for the current year, this is an uncollected income and will be included in gross income when collected
. Bills totaling $2,000 sent for services rendered during the year, uncollected as of year-end.