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accounting- Kelly and Chanelle Chambers, ages 47 and 45, are married and live at Boston, MA 59483




Question;Kelly and Chanelle Chambers, ages 47 and 45, are married and;live at Boston, MA 59483. Kelly?s Social Security number and;Chanelle?s is. The Chambers have two children: Emma, age 23, and;Chet, age 19. Their Social Security numbers are X and;respectively. Emma is a single college student and earned $8,000 during the;summer. Kelly and Chanelle help Emma through school by paying for her room;board, and tuition. Emma lives at home during the summer. Chet has a physical;handicap and lives at home. He attends a local university and earned $4,000;working for a marketing firm. In sum, Kelly and Chanelle provide more than 50%;of both Emma?s and Chet?s total support for the year. Kelly is a commercial;pilot for a small airline. His salary is $95,000, from which $19,000 of federal;income tax and $8,000 of state income tax were withheld. Kelly also pays;premiums for health, disability, and life insurance. $2,000 of the premium was;for health insurance, $250 for disability, and $400 for life insurance.;Chanelle owns Alliance Networks, a proprietorship that does network consulting.;During the year, Chanelle?s gross revenues were $23,000. She incurred the;following expenses in her business: Liability insurance $ 700 Software rental;5,400 Journals and magazines 150 Training seminars 1,200 Supplies 1,300;Donations to a political campaign fund 800 Kelly enjoys playing guitar and;plays in a band. Kelly?s band has developed a local following. This year, his;gross revenues were $1,200 for playing shows and $700 on CD sales. He incurred;the following expenses: Studio rent expense $1,300 Sound system repairs 200 CD;production 500 New guitar and amplifier 800 Kelly?s father passed away during;the year. Kelly and Chanelle received $100,000 from the life insurance policy.;Neither Kelly nor Chanelle paid any of the premiums. Chanelle purchased 100;shares of Thurston Co. stock on May 1, 1991, for $1,000. Thurston Co. was;declared bankrupt during the current year. Chet?s physician recommended that he;see a physical therapist to help with his disability. Kelly paid the therapist;$7,000 during the year because his insurance would not cover the bills. Kelly;and Chanelle went to Las Vegas and won $5,000 at the blackjack table. The next;night, they lost $6,000. Kelly and Chanelle gave $900 to their church and;during the year, they had the following other income and expenses: Real estate;taxes $1,400 Property taxes on car (determined by value) 500 Home mortgage;interest 9,000 Credit card finance charges 2,600 Tax return preparation fees;($600 is allocable to Chanelle?s business) 1,000 Sales tax on purchases during;the year 6,200 Interest from a savings account 800 Interest from City of Boston;Bonds 700 Dividend from 3M stock 400 Prepare Kelly and Chanelle?s tax return;Form 1040 and Schedules A, B, C, and SE for the current year. Clarification;Birthdate for Kelly is 01/15/1956 Birthdate for Chanelle is 01/15/1958. Chet is;to be treated as a full time student. Note: the $400 dividend from 3M stock on page;7-45 is to be treated as Qualified Dividend income.;TREAT ALL REVENUES AND EXPENSES FROM THE BAND AS IF THE IRS;WOULD IMPOSE THE HOBBY LOSS RULE LIMITS. IN OTHER WORDS, IF THERE IS A LOSS;FROM THE BAND'S ACTIVITIES, ASSUME THE HOBBY LOSS RULES APPLY="msonormal">


Paper#42755 | Written in 18-Jul-2015

Price : $25