Thomas and Mary (Your last name) are married with 3 children, ages 14, 11, and...
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Accounting
Thomas and Mary (Your last name) are married with 3 children, ages 14, 11, and 8. Mary is a senior vice-president for a security firm and Thomas is a self employed consultant. Thomas inherited $800,000 from his grandfather in 2013. He spends 10 hours a week managing the rental property they purchased with part of the inheritance and the family's stock portfolio.
Mary's salary $105,000 (Federal Income Tax withheld 12,400, State Income Tax withheld 4,850)
Interest on GMAC Bonds
800
Interest on City of New Orleans Bonds
1,300
Interest on FNB savings account
600
Berlinco, Inc. (a foreign corporation) (nonqualified dividend)
100
Nebraska Bonds 350
. Thomas and Mary received a Form 1099-B from their broker for the sale of the following securities during 2018:
They had purchased the Bonds for 10,500 and the shares of Cassill Corporation stock at a cost of $7,800.
On June 15, 2018 they received 50 shares of General Dynamics' stock as a stock dividend. The fair market value of the General Dynamics stock on June 15, 2018 was $33.50 per share.
Rental Income
35,000
Rental Expenses
Insurance 1,548
Repairs and Maintenance 7,878
Mortgage Interest 8,586
Property Taxes 3,890
Depreciation Expense 12,878
Consulting Income
Expenses: Travel 10,500
Meals 1,000
Conferences 1,500
Office Expenses 7,500
Payroll Tax Expense 1,498
Wages for Office Assistance 18,000
84,000
Thomas and Mary also paid $10,000 in Estimated Federal Taxes and $4,000 in Estimated State Income Taxes.
Itemized deductions:
Unreimbursed medical expenses:
Medical insurance premiums
$ 6,205
Prescription drugs
250
Dentist
950
Emergency room fee
1,875
Cold pills, aspirin, other over-the-counter medicine 120