Homework Problem II
Ryan Reynolds is a single parent living with his three
daughters. His twin daughters are 14 years old and a 19
year-old that attends GCC. He had income and expenditures
for the year as follows.
Salary
Prizes won on the Price is Right
Interest income from:
Bank account
City of Glendale bonds
Illegal income
Inheritance received
Gift from parent
$85,000
3,000
1,000
4,000
5,000
50,000
10,000
Potential Itemized Deductions:
Diamondbacks season tickets
Food
Interest expense on car loan
Interest expense on home mortgage
Property taxes paid (car and home)
Charitable contributions
Federal income tax withheld
State income tax withheld
Tuition and books for GCC
Compute the amount of: a) taxable income,
b) income taxes, and
c) amount of tax to be paid (refunded)
Note: It is not acceptable to submit this page as
homework. Prepare answer, in good form, on a
separate sheet.
ACC 111 Income Taxes \textendash{} Page 14
4,400
5,000
1,100
9,000
5,000
4,000
6,000
2,000
3,600
