
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Mansukhbhai

Transcribed Image Text:Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Assume that the employer port
the self-employment tax on Jessie's income is $729. Joe and Jessie have summarized the income and expenses th
expect to report this year as follows:
Income:
Joe's salary
Jessie's craft sales
Interest from certificate of deposit
Interest from Treasury bond funds
Interest from municipal bond funds
Expenditures:
Federal income tax withheld from Joe's wages
State income tax withheld from Joe's wages
Social Security tax withheld from Joe's wages
Real estate taxes on residence
Automobile licenses (based on weight)
State sales tax paid
Home mortgage interest
Interest on Masterdebt credit card
Medical expenses (unreimbursed)
Joe's employee expenses (unreimbursed)
$ 145,400
18,530
1,780
742
946
$ 13,700
6,660
7,534
6,460
336
1,280
27,300
2,560
1,820
2,660
5,690
158
Travel and lodging for craft shows
2,360
Self-employment tax on Jessie's craft income
1,458
College tuition paid for Lizzie
6,040
Interest on loans to pay Lizzie's tuition
3,460
Lizzie's room and board at college
12,880
Cash contributions to the Red Cross
590
Cost of Jessie's craft supplies
Postage for mailing crafts
a. Determine Joe and Jessie's AGI and taxable income for the year.
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