10. Janet is single and claims two allowances on her Form W-4. Her salary is $1,

ID: 2486036 • Letter: 1

Question

10. Janet is single and claims two allowances on her Form W-4. Her salary is $1,800 per month.

a. Use the percentage method to calculate the amount of Janet’s withholding for a monthly pay period.

b. Use the withholding tables to determine the amount of Janet’s withholding for a monthly pay period.

11. In 2015, Lew earned wages of $384,828.

a. What is the amount of Social Security tax withheld from his salary?

b. What is the amount of Medicare tax withheld from his salary?

12. Provide answers to the following questions:

a. What form does an employer use to report wages to an employee?

b. When must the employer give this form to the employee?

c. What form does an employer use to report wages to the Social Security Administration?

d. When must the employer file the form with the Social Security Administration?

13. Cooke and Thatcher form the C&T Partnership. Cooke contributes equipment with a fair market value of $80,000 and a basis of $35,000, in exchange for an 80 percent interest in the partnership capital and profits. Thatcher performs services worth $20,000 for the partnership in exchange for a 20 percent interest in capital and profits.

a. What is the amount of Cooke’s recognized gain or loss (if any) as a result of the contribution to the partnership in exchange for the partnership interest?

b. What is Cooke’s basis in his partnership interest immediately after the contribution?

c. What is the amount of Thatcher’s recognized income or loss (if any) on the contribution to the partnership?

d. What is Thatcher’s basis in her partnership interest immediately after the contribution?

e. What is C&T Partnership’s basis in the equipment received from Cooke?

Explanation / Answer

10.

Allowance amount (monthly) $180

Number of allowances claimed x 2

Total $360

Gross wages $1800

Less: Amount from above –360

Withholding base $1140

Withholding from percentage tables in Appendix C (($1140 – $927.00) x 15%) + $74.40 = $106.69

11.

Details

Amt $

Wages of Lew in 2015

384828

Wage limit for Social security tax in 2015

117,000

Social Security Tax withheld from Lew's salary = Nil as his salary is above the wage limit

Wage of Lew above $200,000

184828

Mediacre Tax @1.45%

5580.006

Additional Medicare Tax @0.9% for wage above $200,000

1,663.45

Total Medicare Tax withheld

$ 7,243.46

12.

A) gain will be=7500

B)Cookes is contributing land which is presume as a capital for partenership

C)gain=2500

D.thatchers is contributing service as a capital for partnership

e)partener ship firm has option either recived cash or any assets from partener as a capital he is fallow accural system of accounting>a