Aca-1 Essay

666 WordsJun 18, 20153 Pages
Personal Data: • Spouse A is one of the partners in Fan Company A. • Spouse A is married and has a total of three children living in the household. o Spouse A and Spouse B have one 10-year-old child together. o They each have one child from a previous marriage. ▪ Spouse B’s child is an 18-year-old college freshman living at home ▪ Spouse A’s child is a high school junior. • Spouse B’s mother lives with the family. She receives a monthly $750 Social Security check. She contributes all but $90 of this check to the family each month. The spouses have calculated the rent, food and other family contribution to her support at $7000 per year. Earnings: • Spouse A has a K-1 from the partnership. It shows Spouse A’s partnership share of income is $142,000. Spouse A’s cash withdrawals during the year were $83,500. • Spouse A has a W-2 showing $2,000 in gross earnings from the city park district for a part-time soccer referee job. • Spouse B has 20 years experience as a corporate officer and was hired and began work the first of February as a controller for an electronics firm. Spouse B’s gross earnings are $8,000 per month. Investments: • Spouse A invested in 1,000 shares of Company E stock before the couple married 11 years ago. Company E pays a quarterly dividend. • Spouse B was not employed during January and tried day trading for the month. Spouse B bought and sold on a daily basis and experienced net losses of $5,000. • The couple owns a $5,000 municipal bond that pays 9% interest in semi-annual payments. Adjustments to income: • Spouse A pays $600 in alimony monthly. This continues until his former spouse remarries or is

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