8/12/2019 Bucotax Problem 2 (1)

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Mr" ABC and Mrs. ABC, both employed, have several offsprings: the twins DEF and GHI born on IE April1088: JKL bom on ls'F€btuary 1s90;ili4 *eEsrn:.ax ,€$t*Pl.lq$994; PQf'born ae May..lgg4. DEF married

on 4 July 2006, his wife was atreaOy o ,onthi pr"gninfEiiiiiit trme. es he ,"as ioOresi in"y"*t,nr"O tolive with his parents, On 1 January 2007 while sleeping, a wayward bullet fell thiough the ro;f hitting hisspine causing paralysis from his neck down. Thus, Mr. and Mrs. ABC continue to support DEF, his iite anOtheir child. GHI mirroring the untorlunate |ile of his ttrvin was senl home in a eoma ddd to inturios sufferedfrom hazing. He is comatose, a zombie, a living dead slnge B0OS. p,qR.beiasaeenpupf_iiroaigystailedrnakitg'a ot.qpneliat qge'l$,,Ftg,tperds,alol and in$*st$etot, He travets as oftbn as he wints to anddecides alone on what he wants to do. His parents oftentimes do not know his whereabouts, usually they

94y S"t a phone call from him when he has arrived and settled at his destination. PeFl also puts thl chiid ofDEF through school.

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?ttln the year 2005, the monthly salary of Mr. ABC was g7,000 while his wife'$ wa$ 4s,000. Mr. ABC also iqqq

receives quarterly performance bonuses that is pegged al 80o/o of his monthly salary while Mrs. ABCreceives a monthly longsvity bonus based on her length of stay in the company whilh now gives her alongevity bonus equivalent ro 1 0'lo of 116r monthly salary. Mr. n-nC's annusi satiry increases by 6.56 evaryyear while his wife's annual increase is 4.75% based on the total income receiv& lrom the preceding year.

1, How much is the basic personal exemption available to the each spouse

50,ouc each2. Who are the taxpayers in the ABC family?

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3, How much is the available total basic personal exemption for the ABC tamily?IUU\o0D ftr l,tr lRr { lvlrr. NEr

4. How much is the bonus exclusion available for each spouse?50,0U0 lowh sine iin*y hu\\tl 5 Lr,r,ld4^",

5. How much additional exemption is allowed the spouses for DEF?None since Mr and Mrs ABC has already reached the limit of the limit for additional exemptions for dependents

6. DEF is a qualified dependent together with'thur C)nr\g

7. How much is the gross family income in 2011?

103,305 110,019.83117.171.12

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4 L il8. How much is the taxable income of Mr. ABC in ZbO5'lr0 rolcl"tS -p Esco 1 9c1o10.qg y2orla , l(etfo?.Q+

9. How niuch is the taxable iricome of Mrs. ABC in 20.t3 t

UbC28,cg -r '22so + 4\t2t. o"r l91a -- lqqq.2D,,10. How much is the avairabre dependents'additionar exempti6n in 2012

Nryrt , O11, Flbw much is the total tax due in 2014 6 q r $ l:I. 1 i 7; ,\

22iscui qzot?AT l$, -- 7lczb . 5q $suc 1-1qqr. tilv 201., z btcQ.Tz 12. How much is the tax due of Mrs. ABC in 2010,Lt\o+ Za\ ,i,lu{q.qTx iSfu : fqbbf .tq ,/

13. How much is the tax due ol Mr. ABC in 20i12 ?soo f lo llE .1 r zsd; z ZS ttq . it /i

14. How much are the net taxable bonuses of Mr. ABC in 2005

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15. How much is the total bonus that Mrs. ABC received in p005

1G. How much ist""oruiffi*"'"i,il':dtrres in 20j2??r1\1.2t,,

'17. How much is the total deductiiin/exclusion for Mrs. ABC in 2013bOrouD,, + e(rOou =1i,oob

18. How many are the disqualified dependents in 2014

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20. How muitr is tne totai gross income of Mr. ABC in 2013 ' l, i o 93t'{ " 1$'

l+o] a;3u: slr,ooq ? lzo9oq,3q21. How much is the total tax due from 20.t0 to 201 q

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8/12/2019 Bucotax Problem 2 (1)

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2. How ,r" L"*" corporate incorne tax rate of the ABC family

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25. Who is the taxfiler for the income tax due of the spouses

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