1.Kevone is single and works for a local tech firm. He earned $87,000 last year in taxablewages, had $850 in interest on his savings. He contributed $3500 to an IRA. For deductions, hepaid $8500 in real estate taxes, paid $2000 in sales taxes, paid $1500 for memberships inprofessional organizations, and made a $1000 gift to charity. He is eligible for $4000 in varioustax credits. (Use the table below for marginal tax rates, standard deductions and exemptions.)Tax RateSingleup to $9325up to $37,950up to $91,900up to $191,650up to $416,700up to $418,400above $418,400$635010%15%25%28%33%35%39.6%StandarddeductionExemption $4050(per person)Married FilingJointlyup to $18,650up to $75,900up to $153,100up to $233,350up to $416,700up to $470,700above $470,700$12,700(b) What is Kevone's AGI?$4050(a) What is Kevone's gross income?Married FilingSeparatelyup to $9325up to $37,950up to $76,550up to $116,675up to $208,350up to $235,350above $235,350$6350$4050Head of Householdup to $13,350up to $50,800up to $131,200up to $212,500up to $416,700up to $444,550above $444,550$9350$4050(c) Should Kevone itemize or take the standard deduction? How much is his deduction?

The adjusted gross income is the net earning of the taxpayer after deductions and exemptions. The…

1.Kevone is single and works for a local tech firm. He earned $87,000 last year in taxable wages, had $850 in interest on his savings. He contributed $3500 to an IRA. For deductions, he paid $8500 in real estate taxes, paid $2000 in sales taxes, paid $1500 for memberships in professional organizations, and made a $1000 gift to charity. He is eligible for $4000 in various tax credits. (Use the table below for marginal tax rates, standard deductions and exemptions.) Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption (per person) Single up to $9325 up to $37.950 up to $91,900 up to $191,650 up to $416,700 up to $418,400 above $418,400 $6350 $4050 Married Filing Jointly (b) What is Kevone's AGI? up to $18,650 up to $75,900 up to $153,100 up to $233,350 up to $416,700 up to $470,700 above $470,700 $12,700 $4050 (a) What is Kevone's gross income? Married Filing Separately up to $9325 up to $37.950 up to $76,550 up to $116,675 up to $208,350 up to $235,350 above $235,350 $6350 $4050 Head of Household up to $13,350 up to $50,800 up to $131,200 up to $212,500 up to $416,700 up to $444,550 above $444,550 $9350 $4050 (c) Should Kevone itemize or take the standard deduction? How much is his deduction?

1.Kevone is single and works for a local tech firm. He earned $87,000 last year in taxable wages, had $850 in interest on his savings. He contributed $3500 to an IRA. For deductions, he paid $8500 in real estate taxes, paid $2000 in sales taxes, paid $1500 for memberships in professional organizations, and made a $1000 gift to charity. He is eligible for $4000 in various tax credits. (Use the table below for marginal tax rates, standard deductions and exemptions.) Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption (per person) Single up to $9325 up to $37.950 up to $91,900 up to $191,650 up to $416,700 up to $418,400 above $418,400 $6350 $4050 Married Filing Jointly (b) What is Kevone's AGI? up to $18,650 up to $75,900 up to $153,100 up to $233,350 up to $416,700 up to $470,700 above $470,700 $12,700 $4050 (a) What is Kevone's gross income? Married Filing Separately up to $9325 up to $37.950 up to $76,550 up to $116,675 up to $208,350 up to $235,350 above $235,350 $6350 $4050 Head of Household up to $13,350 up to $50,800 up to $131,200 up to $212,500 up to $416,700 up to $444,550 above $444,550 $9350 $4050 (c) Should Kevone itemize or take the standard deduction? How much is his deduction?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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