chedule X-Single taxable income is over: But not over: $ 0 $ 9,950 S 40,525 $ 9,950 $ 40,525 $ 86,375 $ 86,375 $ 164,925 $ 209,425 S 164,925 $ 209,425 S523,600 The tax is: 10% of taxable income $995 plus 12% of the excess over $9,950 | $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425
chedule X-Single taxable income is over: But not over: $ 0 $ 9,950 S 40,525 $ 9,950 $ 40,525 $ 86,375 $ 86,375 $ 164,925 $ 209,425 S 164,925 $ 209,425 S523,600 The tax is: 10% of taxable income $995 plus 12% of the excess over $9,950 | $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:## 2021 Tax Rate Schedules
### Individuals
#### Schedule X - Single
| If taxable income is over: | But not over: | The tax is: |
|----------------------------|---------------|-------------|
| $0 | $9,950 | 10% of taxable income |
| $9,950 | $40,525 | $995 plus 12% of the excess over $9,950 |
| $40,525 | $86,375 | $4,664 plus 22% of the excess over $40,525 |
| $86,375 | $164,925 | $14,751 plus 24% of the excess over $86,375 |
| $164,925 | $209,425 | $33,603 plus 32% of the excess over $164,925 |
| $209,425 | $523,600 | $47,843 plus 35% of the excess over $209,425 |
| $523,600 | — | $157,804.25 plus 37% of the excess over $523,600 |
#### Schedule Y-1 - Married Filing Jointly or Qualifying Widow(er)
| If taxable income is over: | But not over: | The tax is: |
|----------------------------|---------------|-------------|
| $0 | $19,900 | 10% of taxable income |
| $19,900 | $81,050 | $1,990 plus 12% of the excess over $19,900 |
| $81,050 | $172,750 | $9,328 plus 22% of the excess over $81,050 |
| $172,750 | $329,850 | $29,502 plus 24% of the excess over $172,750 |
| $329,850 | $418,850 | $67,206 plus 32% of the excess over $329,850 |
| $418,850 | $628,300 | $95,686 plus 35% of the excess over $418,850 |
| $628,300 | — | $168,993.50 plus 37% of the excess over $628,300 |
#### Schedule Z - Head of Household
| If taxable income is over: | But not over: | The
 *)
**Problem 4-31 Part-a (Algo)**
**Board Task:**
What is the amount of Emily’s after-tax compensation (ignore payroll taxes)? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
| Description | Amount |
|-------------------------------|----------|
| (1) Gross income | $145,400 |
| (2) For AGI deductions | $0 |
| (3) Adjusted gross income | $145,400 |
| (4) Standard deduction | $28,917 |
| (5) Taxable income | $116,483 |
| (6) Income tax liability | $26,000 |
| (7) After-tax compensation | $110,400 |
**Table Summary:**
- **Gross income**: The total money Emily earns before any deductions are accounted for, which is $145,400.
- **For AGI deductions**: Deductions that are taken from the gross income to arrive at adjusted gross income. In this case, Emily has $0 in For AGI deductions.
- **Adjusted gross income**: Gross income minus For AGI deductions, resulting in $145,400.
- **Standard deduction**: A fixed deduction that can be taken to reduce taxable income. Emily's standard deduction is $28,917.
- **Taxable income**: Adjusted gross income minus the standard deduction, which equals $116,483.
- **Income tax liability**: The amount of tax Emily needs to pay, calculated as $26,000.
- **After-tax compensation**: The remaining income after tax liability is subtracted from taxable income, which is $110,400.
*Link not included as this is for illustrative purposes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91a1897c-6376-41f7-9c6e-a56c1adb050a%2F636b453c-f372-4631-9300-192a8b1e30fe%2Ff0ibque_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Educational Scenario**
Emily, who is single, has been offered a position as a city landscape consultant. The position pays $145,400 in cash wages. Assume Emily has no dependents. Emily deducts the standard deduction instead of itemized deductions, she is not eligible for the qualified business income deduction, and she did not make any charitable donations. (Use the [tax rate schedules](link###) *)
**Problem 4-31 Part-a (Algo)**
**Board Task:**
What is the amount of Emily’s after-tax compensation (ignore payroll taxes)? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
| Description | Amount |
|-------------------------------|----------|
| (1) Gross income | $145,400 |
| (2) For AGI deductions | $0 |
| (3) Adjusted gross income | $145,400 |
| (4) Standard deduction | $28,917 |
| (5) Taxable income | $116,483 |
| (6) Income tax liability | $26,000 |
| (7) After-tax compensation | $110,400 |
**Table Summary:**
- **Gross income**: The total money Emily earns before any deductions are accounted for, which is $145,400.
- **For AGI deductions**: Deductions that are taken from the gross income to arrive at adjusted gross income. In this case, Emily has $0 in For AGI deductions.
- **Adjusted gross income**: Gross income minus For AGI deductions, resulting in $145,400.
- **Standard deduction**: A fixed deduction that can be taken to reduce taxable income. Emily's standard deduction is $28,917.
- **Taxable income**: Adjusted gross income minus the standard deduction, which equals $116,483.
- **Income tax liability**: The amount of tax Emily needs to pay, calculated as $26,000.
- **After-tax compensation**: The remaining income after tax liability is subtracted from taxable income, which is $110,400.
*Link not included as this is for illustrative purposes.
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