George's 2019 W-2 showed gross income of $60,000, with $5,000 withheld for federal income tax, $4,590 withheld for social security taxes (FICA), and $3,000 withheld for Kansas (state) income tax.
accounting
Description
1. George's 2019 W-2 showed gross income of $60,000, with $5,000 withheld for federal income tax, $4,590 withheld for social security taxes (FICA), and $3,000 withheld for Kansas (state) income tax.
2. Mary's business generated gross receipts of $175,000 in 2019. During 2019, she
wrote checks for $114,100 related to her business. Mary uses the cash method of
accounting and she keeps a separate bank account for her business. Mary
“materially participants” in the operations of her business, and has no payments that
would require her to file Form 1099. She has provided you with an Excel
spreadsheet (available on K-State Online, titled “Financials,”) which includes a
schedule of the expenses she paid out of her business checking account, as
well as a template for computing tax depreciation.
3. Additional business-related information:
• She received $11,000 on November 11, 2019, from the sale of an old printing
machine (the machine was purchased in February 2015).
