Tax Rate10%12%22%24%32%35%37%Standard DeductionException (per person)SingleUp to $10,275Up to $41,775Up to $89,075Up to $170,050Up to $215,950Up to $539,900Above $539,900$12,950$02022 Tax TableMarried FilingJointlyUp to $20,550Up to $83,550Up to $178,150Up to $340,100Up to $431,900Up to $647,850Above $647,850$25,900$0Married FilingSeparatelyUp to $10,275Up to $41,775Up to $89,075Up to $170,050Up to $215,950Up to $323,925Above $323,925$12,950$0Head of HouseholdUp to $14,650Up to $55,900Up to $89,050Up to $170,050Up to $215,950Up to $539,900Above $539,900$19,400$0 Axel is single with a taxable income of $218,500. He itemizes his deductions. (Simplify your answersand round to the nearest cent.)a. How much would his tax bill be reduced if he contributed $4,200 to a tax-deductible fundraiser?Tax savings: $1470b. How much would his tax bill be reduced if he were entitled to a $4,200 tax credit?Tax savings: $4200

First let us calculate the tax bill for Axel without the tax benefit. Since Alex itemizes his…

a. How much would his tax bill be reduced if he contributed $4,200 to a tax-deductible fundraiser? Tax savings: $1470 b. How much would his tax bill be reduced if he were entitled to a $4,200 tax credit? Tax savings: $4200

a. How much would his tax bill be reduced if he contributed $4,200 to a tax-deductible fundraiser? Tax savings: $1470 b. How much would his tax bill be reduced if he were entitled to a $4,200 tax credit? Tax savings: $4200

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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11.
1. Sergio is single and has a 12 year old daughter whom he supports and lives with him all year round. Sergio's salary is $135,000. His tax withholding is $19,750. His itemized deductions total $16,750. What is Sergio's tax refund or liability (how much does he owe to the IRS)? (explain answer) A. Owe $902 in tax. B. Owe $2,042 in tax C. Have a refund of $1,070 D. Have a refund of $2,042. 2. Nont's Piano Lessons Inc. is a calendar-year taxpayer using the accrual method of accounting. On October 1, 2020, the corporation received $1,200 for a one-year contract beginning on that date to provide 24 piano lessons. The company provided 6 lessons this year under the contract. How much income should the corporation recognize for next year (2021) if the remaining lessons are provided? (explain answer) A) $200 B) $360 C) $900 D) $1,200
Suppose a taxpayer can time when they receive a $100,000 distribution from a pre-tax 401(k) retirement account (this tax year or next). If they wait until next year, they will earn 10% on the account. The distribution is fully taxable at the marginal tax rate of the taxpayer, which is 24% for this year. What would be the marginal tax rate NEXT YEAR to just make the distribution financially advantageous this tax year? Enter your response as a whole number percent without the "%" sign and using 5/4 rounding (25.67% = 26).
Problem 1-34 (LO 1-3) (Algo) Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.) Required: a. How much federal tax will he owe? b. What is his average tax rate? c. What is his effective tax rate? d. What is his current marginal tax rate? Complete this question by entering your answers in the tabs below. Required A Required B Required C Answer is not complete. Federal tax Required D How much federal tax will he owe? Note: Do not round intermediate calculations. Round "Federal tax" to nearest whole dollar amount.
Required information [The following information applies to the questions displayed below] Allie received a $50,000 distribution from her 401(k) account this year that she established while working for Big Stories, Incorporated. Assume that her marginal ordinary tax rate is 24 percent. c. Allie is 67 and retired. How much tax and penalty will Allie pay on the distribution? Tax and penalty 3
Do not use chatgpt
Country A has a tax rate of 5% on the first $20,000 of taxable income, then 20% on the next $30,000, then 50% on all taxable income above $50,000. Country A provides a $10,000 standard deduction. Person B earns $60,000 per year. He saves $5,000 in an 401(k). Calculate his top marginal tax rate and average tax rate. Person C earns $100,000 per year. She save $10,000 in a 401(k). Rather than use the standard deduction, she itemizes her deductions because she gives $15,000 to charity each year. Calculate the her top marginal rate and average tax rate.
For a corporate taxpayer, how much additional tax savings is generated by a $1,000 tax credit as compared to a $1,000 tax deduction? Correct answer should be $790
1. If Dave and his employer contribute a total of $10,000 annually, how much will that amount accumulate to over the next 30 years, at which time Dave and Sharon hope to retire? Future Value of Annuity Contribution Years Annual rate of return Future value $10,000 30 7.00% $944,607.86 2. Assuming that Dave's marginal tax bracket is 25 percent, by how much should his federal taxes decline this year if he contributes $7,000 to his retirement account? 3. The Sampsons' tax bracket has not changed. Assuming that Dave contributes $7,000 to his retirement account and that his taxes are lower as a result, by how much are Dave's cash flows reduced over the coming year? (Refer to your answer in question 2 when solving this problem.) 4. If Dave contributes $7,000 to his retirement account, he will have less cash inflows as a result. How can the Sampsons afford to make this contribution? Suggest some ways that they may be able to offset the reduction in cash inflows.
Suppose a tax is such that an individual with an income of $10,000 pays $2000 of tax, a person with an income of $20,000 pays $3000 of tax, a person with an income of $30,000 pays $4000 of tax, and so forth. What is each person’s average tax rate? Is this tax regressive, proportional, or progressive?
If a person with a 24 percent tax bracket makes a deposit of $6,500 to a tax-deferred retirement account, what amount would be saved on current taxes? Current tax savings
Problem 1-34 (LO 1-3) (Algo) Chuck, a single taxpayer, earns $77,100 in taxable income and $12,400 in interest from on investment in City of Heflin bonds. (Use the US tax.rate schedule) Required: a. How much federal tax will he owe? b. What is his average tax rate? c. What is his effective tax rate? d. What is his current marginal tax rate? Complete this question by entering your answers in the tabs below. Req A Reg B Req C Req D What is his average tax rate? (Do not round intermediate calculations. Round total tax to nearest whole dollar amount.) Choose Numerator Choose Denominator Average Tax Rate Taxable income Total expense Total profit Total tax Total income

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