MITOLirir※edhunuานnumoData table(Click the icon here in order to copy the contents of the data table below intoa spreadsheet.)TABLE 1.2: Tax Rates and Income Brackets for JointReturns (2018)Tax Rates10%12%22%24%32%35%37%Taxable IncomeJoint Returns$0 to $19,750$19,751 to $80,250$80,251 to $171,050$171,051 to $326,600$326,601 to $414,700$414,701 to $622,050Over $622,050Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income:1. $125,000 from salary and wages (ordinary income).2. $1,000 in interest income.3. $3,000 in dividend income.4. $2,000 in profit from sale of a stock they purchased two years ago.5. $2,000 in profit from a stock they purchased this year and sold this year.Use the federal income tax rates given in Table 1.2, to work this problem.a. How much will Mike and Julie pay in federal income taxes on 2 above?b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income is taxed differently than ordinary income.)c. How much will Mike and Julie pay in federal income taxes on 4 above?d. How much will Mike and Julie pay in federal income taxes on 5 above?a. The amount Mike and Julie will pay in federal income taxes on 2, their interest income, is $ (Round to the nearest dollar.)taxecarest c

There are incomes which is required to be analysed from the perspective view of tax which is how…

Answered: a. How much will Mike and Julie pay in…

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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Consider Taxpayers A and B who are in the same marginal tax bracket because of equal salaries. They each earn an additional $20,000—Taxpayer A by working overtime and Taxpayer B by selling stock resulting in a $20,000 capital gain. Taxpayer A pays tax at the ordinary income tax rate on his additional wages while Taxpayer B benefits from the lower capital gains tax rate on his extra income by selling an investment asset. Is this equitable? Should equivalent incomes be taxed equally?
A) Suppose that Charles holds the land for appreciation. deductible taxes from AGI ( ) B) Suppose that Charles holds the land for rent. Suppose that Charles holds the land for rent.
6. A married couple are calculating their federal income tax using the tax rate tables: Then Estimated Taxes Are If Taxpayer's Income Is Between So $16,700 $67,900 $137,050 $208,850 $372,950 But Not Over $16,700 $67,900 $137,050 $208,850 $372,950 Base TaxRate $0 10% $1,670.00 15% $9,350.00 25% $26,637.50 28% $46,741.50 33% $100,894.50 35% S0 $16,700 $67,900 $137,050 $208,850 $372,950 How much tax will they have to pay on their taxable income of $202,000? (4
From the following list of tax credits, which credits help to reduce the tax liability on a taxpayer's taxable income? 1. Personal tax credit 2. Earned income credit 3. Child savers credit 4. Student loan interest credit 1, 2, and 3. 2 and 3. 2, 3, and 4. 1, 2, 3, and 4.
Income Tax Credits (LO. 6) Refer to Exhibit 8-5 and 8A-1 SCHEDULE EIC (EARNED INCOME CREDIT) 2018 EARNED INCOME CREDIT TABLE to answer the following questions. Determine the total allowable 2018 earned income credit in each of the following situations: a. Rina is single and earns $6,800 in salary for the year. In addition, she receives $2,200 in unemployment compensation during the year. b. C. Lachlan is single with one dependent child. During the year, he earns $8,000 as a waiter and receives alimony of $10,000 and child support of $5,000. Zorica is a single parent with two dependent children. She earns $19,000 from her job as a mechanic. She also receives $3,000 in child support from her ex-husband. d. Elliot and Pam are married and have three dependent children. Elliot and Pam earn $12,000 and $9,000 from their jobs, respectively. They receive $800 in interest and $1,000 in dividend income. Assume the taxpayer files a joint return.
Use the table to calculate how much money Lizzie will owe in taxes under a progressive tax program. Give your answer to two decimals. Calculate how much money Lizzie will owe in taxes under a proportional, or flat, tax rate of 30%30%. Give your answer to two decimals.
What is the correct answer to the following questions (1,2 and 3): 1. How much is the taxable income? 2. How much is the income tax due? 3. How much of Taylor's income is subject to final tax?
Timmy Tappan is single and had $187,500 in taxable income. Use the rates from Table 2.3. a. Calculate his income taxes. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the average tax rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the marginal tax rate? (Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.) a. Income taxes b. Average tax rate c. Marginal tax rate % %
Problem 10-37 (Algorithmic) (LO. 6, 7, 8, 9, 10, 11) Amy and Mitchell share equally (50%) in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's tax basis capital account has a balance of $736,000, and the LLC has debts of $478,400 payable to unrelated parties. All debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. The following information about AM's operations for the current year is obtained from the LLC's records. Operating income W-2 wages Depreciation expense Interest income Long-term capital loss Long-term capital gain Charitable contribution (cash) Cash distribution to Amy Unadjusted basis of partnership property immediately after acquisition $1,104,000 200,000 300,000 11,040 7,360 22,080 11,090 55,200 1,600,000 Operating income equals revenue less operating expenses (other than…
What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit?$ Why is there an investment income limit in the tax law regarding the credit? The earned income credit is meant to assist
Given the following tax structure, Taxpayer Salary Total tax $21,500 $1,032 $46,000 ??? Mae Pedro a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round your final answer to nearest whole dollar amount.) Minimum tax b. This would result in what type of tax rate structure? Tax rate structure
For the person below, calculate the FICA tax and income tax to obtain the total tax owed. Then find the overall tax rate on the gross income, including both FICA and income tax. Assume that the individual is single and takes the standard deduction. A man earned $30,000 from wages. Tax Rate 10% Single up to $9325 15% up to $37,950 25% up to $91,900 28% up to $191,650 33% up to $416,700 35% up to $418,400 39.6% above $418,400 Standard deduction Exemption (per person) $6350 $4050 Let FICA tax rates be 7.65% on the first $127,200 of income from wages, and 1.45% on any income from wages in excess of $127,200. His FICA tax is $ (Round up to the nearest dollar.)

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