Determine the amount of taxes owed or the refund that would result in this situation:• Filing Status: Married filing jointly. Gross Income: $125,000.Adjustments: $6,900• Itemized Deductions: $10,400• Credits and Withholdings: $15,000a. What is their adjusted gross income (AGI)?b. Should they itemize or take the standard deduction?take the standard deductionⒸitemizec. Use the simplified 2018 tax tables to determine their taxable income."Remember to subtract the deduction to determine the taxable income.d. Determine their tax using the 2018 tax tablee. What is their final tax refund or amount still owed (if they owe enter the number as a negative)?Standard deductionMarried filing jointly and surviving spousesSingle (other than surviving spouses and heads of households)Heads of householdsMarried filing separatelyPersonal Exemption: None$24,000$12,000$18,000$12,000Single (other than surviving spouses and heads of households)If taxable income is:The tax is:Not over $9,52510% of the taxable income$952.50 plus 12% of the excess over $9,525$4,453.50 plus 22% of the excess over $38,700$14,089.50 plus 24% of the excess over $82,500$32,089.50 plus 32% of the excess over $157,500Over $9,525 but not over $38,700Over $38,700 but not over $82,500Over $82,500 but not over $157,500Over $157,500 but not over $200,000 Over $200,000 not over $500,000Over $500,000Heads of householdsIf taxable income is:Not over $13,600Over $13,600 but not over $51,800Over $51,800 but not over $82,500Over $82,500 but not over $157,500Over $157,500 but not over $200,000Over $200,000 not over $500,000Over $500,000$45,689.50 plus 35% of the excess over $200,000$150,689.50 plus 37% of the excess over $500,000The tax is:10% of the taxable income$1,360 plus 12% of the excess over $13,600$5,944 plus 22% of the excess over $51,800$12,698 plus 24% of the excess over $82,500$30,698 plus 32% of the excess over $157,500$44,298 plus 35% of the excess over $200,000$149,298 plus 37% of the excess over $500,000

Answered: Image /qna-images/answer/2b60d98c-cf66-45ab-8b6d-c6d9660d46ea.jpg

Answered: Determine the amount of taxes owed or…

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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The following information relates to two married couples: (Click the icon to view the information.) (Click the icon to view the 2021 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the standard deduction amounts.) Read the requirement. Begin by computing taxable income for each couple. (Complete all input fields. Enter "0" for accounts with a zero balance.) McDonalds Cadys Taxable income Requirement Compute the 2021 tax due or refund due for each couple. Assume that any restrictions on itemized deductions have been applied. Ignore credits. Print Done
! Required information [The following information applies to the questions displayed below.] Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 2,050 7,450 4,200 650 4,650 23,700 During the year, Alexa rented out the condo for 137 days. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 137 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $47,750 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo and that her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the…
Select the best answer to the tax credit and corporate and partnership income tax issues. Mamey, Inc. had taxable income of $138,500 in 2020. What is the income tax expense for the year 2020? a. $29,085 b. $25,623 c. $34,625 d. $27,700 Which of the following items might not generally appear on the Schedule M-1 reconciliation a. Exempt interest income b. Meal expenses c. Office material expenses d. Federal income tax expense Cubey Industries, Inc. has a net book income of $76,100. For the year it had an income tax expense of $18,900. During the year Cubey received pandemic exempt income of $5,000 and had total food expense of $1,000 on books. What is the result of the Schedule M-1 reconciliation per Schedule line 10. a. $81,600 b. $90,500 c. $95,500 d. $95,000 The net operating losses (NOLs) that a corporation has available to be used against taxable income for the year 2020 are subject to a. A limitation of 90% of taxable income b.…
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Problem 10-37 (Algorithmic) (LO. 6, 7, 8, 9, 10, 11) Amy and Mitchell share equally (50%) in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's tax basis capital account has a balance of $736,000, and the LLC has debts of $478,400 payable to unrelated parties. All debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. The following information about AM's operations for the current year is obtained from the LLC's records. Operating income W-2 wages Depreciation expense Interest income Long-term capital loss Long-term capital gain Charitable contribution (cash) Cash distribution to Amy Unadjusted basis of partnership property immediately after acquisition $1,104,000 200,000 300,000 11,040 7,360 22,080 11,090 55,200 1,600,000 Operating income equals revenue less operating expenses (other than…
Mark each statement below as either "True" or "False" regarding the standard deduction and itemized deductions. a. The standard deduction is an amount that varies with filing status. b. A taxpayer should claim the smaller of the standard deduction or the total allowed itemized deductions. c. Total itemized deductions depend on the amount and type of items, with some items having limitations based on AGI. d. Taxpayers who are 65 years of age or older or blind are entitled to an additional itemized deduction amount.
Journalizing reversing entries Lucas Architects recorded the following adjusting entries as of December 31: Service Revenue accrued, $2,600. Unearned Revenue that has been earned, $1,300. Office Supplies on hand, $530. The balance of the Office Supplies account was $880. Salaries owed to employees, $600. One month of Prepaid Rent has expired, $3,100. Depreciation on equipment, $1,075. Journalize any necessary reversing entries for Lucas Architects.
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Using the appropriate tax tables or tax rate schedules, determine the amount of tax liability in each of the following instances. Please use the 2020 Tax year a. A married couple filing jointly with taxable income of $32,991. b. A married couple filing jointly with taxable income of $192,257. c. A married couple filing separately, one spouse with taxable income of $43,885 and the other with $56,218. d. A single person with taxable income of $79,436. e. A single person with taxable income of $297,784. f. A head of household with taxable income of $96,592. g. A qualifying widow with taxable income of $14,019. h. A married couple filing jointly with taxable income of $11,216.
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