Question

John and Jane Doe are married retired taxpayers who care for their three-year-old grandson. The following information was provided to you as documentation necessary to prepare their 2017 tax return. You will gather the appropriate information and complete the forms provided in Blackboard (1040, Schedule A, Schedule B and Schedule D) in preparation of their tax file. Please note that the forms provided may not match the tax year of the course, as IRS forms are not available until just before the start of the filing season, and this course generally is approximately a year ahead of the actual form releases. Therefore, do not worry about the year on top of the forms, but utilize information for the current year of the textbook in use for this course when determining deduction amounts, exemption amounts, and tax rates.

Taxpayer:

Name: John Doe

DOB: 6/29/1950

SSN: 555-12-345

Spouse:

Name: Jane Doe

DOB: 7/4/1948

SSN: 555-65-4321

Dependent:

Name: Jimmy Doe

DOB: 1/12/2014

SSN: 555-68-9101

Mailing Address:

12345 Any Street           

Los Angeles, Ca 90124

Deductions

Prescription Medication: $638

Doctor’s Visits: $2,904

Insurance Premiums out of pocket (not including Medicare premiums deducted from social security): $5,125

Medical Miles Driven: 410

Deductible DMV registration fees: $170

Income:

Received a gift from Jane’s mother, $12,000

Sold Stock with a basis of $10,000 for $13,500. Held the stock for more than one year

Sold stock with a basis of $5,000 for $5,500. Held the stock for less than one year.

Finally, all three members of the family had qualifying health insurance for the entire year.

CORRECTED (if checked) Payers RTN (optional) OMB No 1545-0112 PAYER S name, streel address, city of town, state or province country. ZIP or foreign postal code and telephone no GOVERNMENT PERSONNEL MUTUAL LIFE INS CO 2211 NE LOOP 410 P.O. BOX 659567 SAN ANTONIO, TX 78265-9567 800-929-4765 2016 Interest Income 1 Interest income $56.98 2 Early wahdrawal penalty Form 1099-INT 3 Interest on U.S. Savings Bonds and Treas, obligations PAYER Stederal identification number RECIPIENTS Identification number 74-0651020 RECIPIENTS name, street address, city or town, state or province country, and ZIP or foreign postal code 4 Federal income tax withhold Investment expenses 6 Foreign lax paid 17 Foreign country or U.S. Possession John Doe 12345 Any Street Los Angeles, Ca 90124 Copy B For Recipient This is important tax Information and is being furnished to the Internal Revenue Service. If you are required to file a retum, a negligence penalty or other sanction may be imposed on you this income is taxable and the IRS delermines that it has not been reported 8 Tax-exempt interest 9 Specified private activity bond interest 10 Maikel discount 11 Bond premium 12 Bond premium on Treasury obligations 13 Bond premium on tax-exempt bond 114 Tax-exempt and tax credeband CUSIP no Account number see instructions 000275767 Form 1099-INT FATCA fing requirement (keep for your records) 15 State 16 State identification no. 17 State lax withbeid NM 03-221595-009 Department of the Treasury - Intemal Revenue Service www.irs.gov/form 1099int

Answer 1

Requirement (a)
Date	Accounts Title and Explaination	Debit	Credit
Mar-09	Treasury Stock	$ 3,14,400.00
	Cash		$ 3,14,400.00
	(To Record reacquired common stock)
Jun-09	Cash	$ 2,07,500.00
	Treasury Stock		$ 1,99,200.00
	Paid in capital from sale of treasury stock		$      8,300.00
	(To Record sale reacquired common stock)
Nov-13	Cash	$     83,700.00
	Treasury Stock		$    74,400.00
	Paid in capital from sale of treasury stock		$      9,300.00
	(To Record sale reacquired common stock)
Requirement (b)
Balance in Paid in capital from sale of treasury stock on Dec 31			$17,600.00
($8300+$9300)
Requirement (C.)
Balance in treasury stock on Dec 31			$40,800.00
(13100-8300-3100)*$24
Requirement (d.)
Balance in Treasury stock is reported as deduction from Total of paid in capital
and Retained earnings