41.  Tim and Sarah Lawrence are married and file a joint return. Tim’s Social Security number is 123-45-6789, and Sarah’s Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent  children, Sean and Debra, ages 12 and 16, respectively. Sean’s Social Security number is 123-45-6788, and Debra’s Social Security number is 123-45-6787. Tim is self-employed as the sole proprietor  of an unincorporated business, and Sarah is a corporate execu-  tive. Tim reports the following 2015 income and expenses from his business.

Gross income                                                                                                                                                                            $325,000

Business expenses                                                                                                                                                                    201,000

Sarah was covered for the entire year by her employer’s health insurance policy.   Other records related to Sarah’s employment provide the following information.

Tax  Computation Problem

 

 

Salary	$145,000
Unreimbursed travel expenses (including $200  of  meals)	1,100
Unreimbursed  entertainment expenses	500
Other pertinent 2015 information follows.	Â
Proceeds from sale of stock acquired on July 15, 2015 (cost of $12,000), and sold on August 1,   2015	  $  9,800
Proceeds from sale of stock acquired on September 18, 2014 (cost    of $5,000),
and sold on October 5,  2015	3,800
Wages paid to full-time domestic worker for housekeeping and    child  supervision	10,000
Interest income received	7,000
Total itemized deductions  (not including  any potential deductions   above)	27,900
Federal  income  tax withheld	31,850
Estimated payments, Federal income  tax	34,000

Compute the 2015 net tax payable or refund due for Tim and Sarah Lawrence.