2B. Carl Conch and Mary Duval are married and file a joint...

80.2K

Verified Solution

Question

Accounting

2B.
Carl Conch and Mary Duval are married and file a joint return. Carl works for the Key Lime Pie Company and Mary is unemployed after losing her job in 2020. Carls birthdate is June 14,1976 and Marys is October 2,1976. Carls earnings are reported on the following Form W-2:
Carl and Mary received the following Form 1099:
Mary is divorced and she pays her ex-husband (Tom Tortuga) child support. Pursuant to their January 12,2018 divorce decree, Mary pays Tom $500 per month in child support. All payments were made on time in 2021.
In June 2021, Marys father gave her a cash gift of $75,000.
Mary also received unemployment compensation as shown on the following Form 1099-G:
Mary won a $600 prize in a womens club raffle in 2021. No income tax was withheld from the prize.
The Key Lime Pie Company provides Carl with a company car to drive while he is working. The Company spent $6,475 to maintain this vehicle during 2021. Carl never uses the car for personal purposes. The Key Lime Pie Company also provides a cafeteria for all employees on the factory premises. Other restaurants exist in the area and so Carl is not required to eat in the cafeteria, but he typically does. The value of Carls meals is $650 in 2021.
Carl and Mary received a $2,800 EIP in 2021.
Required: Complete Carl and Marys federal tax return for 2021 on Form 1040 and Schedule 1.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students