a. If you are in the 32 percent tax bracket, how much will you save in taxes for the current year? (Assume your other itemized deductions exceed the standard deduction amount.) Tax savings b. If you deposit that tax savings in a savings account for the next four years at 6 percent, what will be the future value of that account? Use Exhibit 1-A. (Round FV factor to 3 decimal places. Round your answers to 2 decimal places.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 30, you make a $4,100 charitable donation.
a. If you are in the 32 percent tax bracket, how much will you save in taxes for the current year? (Assume your other
itemized deductions exceed the standard deduction amount.)
Tax savings
b. If you deposit that tax savings in a savings account for the next four years at 6 percent, what will be the future
value of that account? Use Exhibit 1-A. (Round FV factor to 3 decimal places. Round your answers to 2 decimal
places.)
Future value
Transcribed Image Text:On December 30, you make a $4,100 charitable donation. a. If you are in the 32 percent tax bracket, how much will you save in taxes for the current year? (Assume your other itemized deductions exceed the standard deduction amount.) Tax savings b. If you deposit that tax savings in a savings account for the next four years at 6 percent, what will be the future value of that account? Use Exhibit 1-A. (Round FV factor to 3 decimal places. Round your answers to 2 decimal places.) Future value
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