Alex and Addison are married and have the following income items: Alex’s salary $ 64,000 Addison’s Schedule C net profit 43,000 Interest income 1,900 Addison’s self-employment tax was $6,076. Addison's Schedule C net business profit is qualified business income (non-service). The couple have $9,270 itemized deductions and no children or other dependents. Required: Compute their income tax on a joint return. Assume the taxable year is 2022. Use Individual Tax Rate Schedules and Standard Deduction Table.

Alex and Addison are married and have the following income items: Alex’s salary $ 64,000 Addison’s Schedule C net profit 43,000 Interest income 1,900 Addison’s self-employment tax was $6,076. Addison's Schedule C net business profit is qualified business income (non-service). The couple have $9,270 itemized deductions and no children or other dependents. Required: Compute their income tax on a joint return. Assume the taxable year is 2022. Use Individual Tax Rate Schedules and Standard Deduction Table.

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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Alex’s salary	$ 64,000
Addison’s Schedule C net profit	43,000
Interest income	1,900

Required:

Compute their income tax on a joint return. Assume the taxable year is 2022. Use Individual Tax Rate Schedules and Standard Deduction Table.

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