FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Taxpayer:
Gregory and Brenda Morris, filing 1040

Filing Status:
married, filing jointly

Exemptions:
2 children

Taxes withheld:
$5,300

Income:
Mr. Morris: $32,000
Mrs. Morris: $20,000
Interest income: $500
Bonus for Mr. Morris: $4,000

Deductions:
● Medical expenses:
Drugs: $400
Hospitalization insurance: $1,000
Doctor bills: $2,000
Dentist bills: $1,600
Eyeglasses: $200
Medical supplies: $800
● Interest expenses:
Home mortgage: $6,000
● Contributions:
Calvary Church: $5,000
Oakdale Children's Home: $1,000

How much is the taxable income? Do they owe additional taxes, or do they get a refund? How much?

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