55. Smith faces a progressive federal income tax structure such that the marginal tax rate Imposed on: the first $10,000 of income is 10%, the next $10,000 of income is 15%, the next $20,000 of income is 25%, and all additional income is 40%. In addition, she must pay 5% of her income in state income tax and 15% of her wage and salary income in federal payroll tax. Smith earns $70,000 per year in salary plus $10,000 per year in "unearned" income. What is her average tax rate when considering federal and state income taxes as well as federal payroll tax? a. 46.69% b. 49.375% C. 47.5% d. 40% se ma base

55. Smith faces a progressive federal income tax structure such that the marginal tax rate Imposed on: the first $10,000 of income is 10%, the next $10,000 of income is 15%, the next $20,000 of income is 25%, and all additional income is 40%. In addition, she must pay 5% of her income in state income tax and 15% of her wage and salary income in federal payroll tax. Smith earns $70,000 per year in salary plus $10,000 per year in "unearned" income. What is her average tax rate when considering federal and state income taxes as well as federal payroll tax? a. 46.69% b. 49.375% C. 47.5% d. 40% se ma base

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

My daughter earns a salary of $40,800 per year, payable monthly. She is married and claims four withholding allowances. What is her federal income tax? Gross monthly is $3400
Mary, a taxpayer in the 35 percent marginal tax bracket, borrows $500,000 at 10 percent interest to invest in 7 percent tax-exempt municipal bonds. The annual interest expense on the loan is $50,000. Mary earns $35,000 interest income on the bonds. What is Mary’s interest expense deduction?
Karen most had a federal tax levy of 2100.50 against her. If Most is single with two personal exemptions and had take home pay of 499 this week, how much would her employer take from her pay to satisfy part of the tax levy?
Trudy's AGI last year was $366,000. Her Federal income tax came to $109,800, paid through both withholding and estimated payments. This year, her AGI will be $549,000, with a projected tax liability of $82,350, all to be paid through estimates. Trudy wants to pay the least amount of tax that does not incur a penalty. Note: Ignore the annualized income method. If required, round intermediate calculations to two decimal place and your final answer to the nearest dollar. a. Compute Trudy's total estimated tax payments for this year.Under the current-year method: $Under the prior-year method: $ b. Assume instead that Trudy's AGI last year was $86,000 and resulted in a Federal income tax of $17,200. Determine her total estimated tax payments for this year.Under the current-year method: $Under the prior-year method: $
Karen Most has a federal tax levy of $2,100.50 against her. If Most is single with two personal exemptions and had a take-home pay of $499.00 this week, how much would her employer take from her to satisfy part of the tax levy?
Mike, not married without dependents, has a $400,000 salary, $100,000 short-term capital gains, and $100,000 private activity municipal bond interest income. Mike's itemize deductions are $10,000. Calculate Mike's tentative minimum tax for the current year excluding net investment income tax.
Tonya, who lives in California, inherited a $100,000 State of California bond in 2021. Her marginal Federal tax rate is 35%, she itemizes deductions on her Federal tax return, and her marginal state tax rate is 5%. The California bond pays 3.3% interest, which is not subject to California income tax. She can purchase a corporate bond of comparable risk that will yield 5.2% or a U.S. government bond that pays 4.6% interest. What is the after-tax income from each bond? California bond: $ Corporate bond: $ U.S. government bond: $
1. The Smiths are a family of four with the wife earning $150,000 and the husband earning $50,000. Their two children are young enough to qualify for the child tax credit of $2000 per child. The standard deduction for a couple is $25,000 and there are no personal exemptions. The tax brackets are 10% up to $25,000, 20% up to $75,000 and then 30% on taxable income above $75,000. 1C. Suppose the Smiths live in FL (sunny and no state income tax) but have a $300K home taxed at 2%, what is the sum of their annual Federal, SS, Medicare and Property Taxes?
Heidi is 23 years old, a full-time student and a dependent of her parents. She earns $4,100 working part-time and receives $2,900 interest on savings. She saves both the salary and interest. (The tax year is 2018.) (Click the icon to view the child tax F(Click the icon to view the standard deduction amounts.) rate brackets.) (Click the icon to view the 2018 tax rate schedule for the Single filing status.) Read the requirements. Requirement a. What is Heidi's taxable income and tax? Amount Taxable income Tax Reference Child's tax rate brackets: 10% tax rate: Portion of taxable income not over ETI plus $2,550 24% tax rate: Portion of taxable income over ETI plus $2,550 but not over ETI plus $9,150 35% tax rate: Portion of taxable come over ETI plus $9,150 but not over ETI plus $12,500 37% tax rate: Portion of taxable income over ETI plus $12,500 a. What is Heidi's taxable income and tax? C b.How would your answer for part a change if Heidi were 16 years old? Print Done X
Carson Holiday has a federal tax levy of $4,119.90 against him. If Holiday is single with three personal exemptions and had a take-home pay of $1,020.00 this week, how much would his employer take from his pay to satisfy part of the tax levy?
Clayton received a $140,000 distribution from his 401(k) account this year. Assuming Clayton's marginal tax rate is 25 percent, what is the total amount of tax and penalty Shauna will be required to pay if she receives the distribution on her 62nd birthday and she has not yet retired? Group of answer choices $0 $14,000 $35,000 $49,000 None of the choices is correct.
n each of the following cases, discuss how the taxpayers might respond to a tax rate increase in a manner consistent with the income effect. a. Mr. Edwards earns $32,000 a year as an employee, and Mrs. Edwards doesn’t work.b. Mr. Frank earns $22,000 a year as an employee, and Mrs. Frank earns $10,000 a year as a self-employed worker.c. Mr. George earns $22,000 a year as an employee, and Mrs. George earns $10,000 a year as an employee.