Required information [The following information applies to the questions displayed below.] Reba...

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Accounting

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[The following information applies to the questions displayed below.]
Reba Dixon is a fifth-grade school teacher who earned a salary of $37,000 in 2023. She is 45
years old and receives $1,200 of alimony payments each month from her former husband
(divorced in 2016). Reba also rents out a small apartment building. This year Reba received
$55,000 of rental payments from tenants, and she incurred $19,500 of expenses associated with
the rental.
Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in
January of this year. Reba provides more than one-half of Heather's support. They had been
living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to
move back to Georgia to be closer to her family. Luckily, last December, a teaching position
opened up and Reba and Heather decided to make the move. Reba paid a moving company
$2,510 to move their personal belongings, and she and Heather spent two days driving the 1,860
miles to Georgia.
Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but
she started attending school full time in January and throughout the rest of the year at a nearby
university. She was awarded a $3,830 partial tuition scholarship this year, and Reba helped out
by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the
education credit for these expenses.
Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax
return. However, she kept track of several expenses this year that she thought might qualify if
she was able to itemize. Reba paid $7,430 in state income taxes and $16,050 in charitable
contributions during the year. She also paid the following medical-related expenses for herself
and Heather:
Shortly after the move, Reba got distracted while driving and ran into a street sign. The accident
caused $1,250 in damage to the car and gave her whiplash. Because the repairs were less than
her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two
months after the accident. Fortunately, she received $2,000 from her disability insurance. Her
employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a
nontaxable fringe benefit, and Reba paid the remaining 40 percent portion.
A few years ago, Reba acquired several investments with her portion of the divorce settlement.
This year she reported the following income from her investments: $1,000 of interest income
from corporate bonds and $2,000 interest income from City of Denver municipal bonds. Overall,
Reba's stock portfolio appreciated by $15,380, but she did not sell any of her stocks.
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