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In: AccountingDorthy who is 55 years old, works as a financial analyst inCapital One bank. Her...Dorthy who is 55 years old, works as a financial analyst inCapital One bank. Her monthlysalary is $13,000. Dorthy is married to John who is 66 years of ageand works as asalesman for a local car dealership. His monthly salary from thedealership is $8,500 permonth but he has a very flexible schedule so he supplements hissalary by accepting anemployment in the evening at a high-end restaurant and earn $3,000per month.They have 3 kids (Nancy is 12, Hana is 15, and Joseph is 19 andattending a localcommunity college). Dorthy has two sisters and three brothers. Johnhas only one sister.Dorthy and John live in Detroit, Michigan.Additional information for 2019:1) They received interest income of $5,000 from their savingaccount inCapital one and $3,500 from Municipal bonds.2) They sold stocks of Facebook for $25,000 (the stocks werepurchased in2016 for $29,000).3) Dorthy invested $7,800 in an IRA account in JB Morgan whileJohninvested $9,000 in an IRA account in Vanguard.4) Dorthy and John paid $60,000 mortgage interest in 2019 for$1,200,000mortgage loan that was taken on January 1, 2017. The interest rateis 6% onthis mortgage.5) John paid alimony of $1,500 monthly to his ex-wife, Lori. Thedivorcehappened in 2015.6) Dorthy received cash dividends of $3,800 from Amazon stocks onMarch20, 2019.7) Dorthy and John spent $100,000 from their own-pocket onmedicaltreatment during 2019. Their health insurance company coveredonly$400,000 of the total medical cost. Total medical cost is$500,000.8) Dorthy donated cash $10,500 to her local church.9) Dorthy’s employer (Capital one) withheld $22,800 for federalincometaxes, $14,700 for state income taxes, and the required amounts forFICA and Medicare from her paychecks.10)John’s two employers withheld $16,500 for federal income taxes,$10,900for state income taxes, and the required amounts for FICA andMedicarefrom his paychecks.11)John’s father died on June 1, 2019. John received $500,000 fromhisfather’s life insurance.Assume that Dorthy and John file their tax return for 2019 asmarried filing joint return.Required: Answer the following question. (Provide detailedanswersfor each question and provide justification of how did you reachyourconclusion).1) Calculate the gross income of Dorthy and John for 2019. Showthe items that should be includedor excluded from income of Dorthy and John separately. Show alsothe total that will be includedin their tax return. Explain how and why.2) List all the items and the amounts of all possible deductionsFOR AGI applicable to Dorthy andJohn. Explain how and why.3) List all the items and the amounts of all possible deductionsFROM AGI (itemized Deductions)applicable to Dorthy and John. Explain how and why.4) Calculate the taxable income and the gross amount of tax. Showall your calculations.5) How much Social security and Medicare taxes should have beenwithheld by each of the threeemployers (Capital One, Car Dealership, and High-endrestaurant).6) Given their high level of income, what recommendations would youprovide them with on how toreduce their tax liabilities.