Compute Mr. Coleman's income tax. Assume the taxable year is 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mr. Coleman, an unmarried individual, has the following income items:
Interest income
Schedule C net profit
$23,800
58,240
He has $10,000 itemized deductions and no dependents. Mr. Coleman's Schedule C
income is qualified business income (non service).
Required:
Compute Mr. Coleman's income tax. Assume the taxable year is 2020. Use Individual
Tax Rate Schedules and Standard Deduction Table. (Round your intermediate
calculations and final answers to the nearest whole dollar amount.)
AGI
Taxable Income
Income tax
Amount
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