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Example 6-4 Borden Company received a federal tax levy on John Kline. Kline is single, claims 2 personal allowances, and had a takehome pay of $621.00 this week. The amount of the tax levy (in 2019) would be: Take-home pay $621.00 Less: Exempt amount (from Figure 6.3). 396.16 Federal tax levy $224.84 Figure 6.3 2019 Table for Amount Exempt for Tax Levy (Single Person) Filing Status: Single Pay Period Number of Exemptions Claimed on Statement 0 1 2 3 4 5 More Than 5 Daily 46.92 63.07 79.22 95.37 111.52 127.67 46.92 plus 16.15 for each dependent Weekly 234.62 315.39 396.16 476.93 557.70 638.47 234.62 plus 80.77 for each dependent Biweekly 469.23 630.77 792.31 953.85 1115.39 1276.93 469.23 plus 161.54 for each dependent Semimonthly 508.33 683.33 858.33 1033.33 1208.33 1383.33 508.33 plus 175 for each dependent Monthly 1016.67 1366.67 1716.67 2066.67 2416.67 2766.67 1016.67 plus 350 for each dependent Source: Internal Revenue Service. Carson Holiday has a federal tax levy of $4,119.90 against him. If Holiday is single with three personal exemptions and had a take-home pay of $1,020.00 this week, how much would his employer take from his pay to satisfy part of the tax levy? Round your intermediate calculations and final answer to the nearest cent. $__________________

Example 6-4 Borden Company received a federal tax levy on John Kline. Kline is single, claims 2 personal allowances, and had a takehome pay of $621.00 this week. The amount of the tax levy (in 2019) would be: Take-home pay $621.00 Less: Exempt amount (from Figure 6.3). 396.16 Federal tax levy $224.84 Figure 6.3 2019 Table for Amount Exempt for Tax Levy (Single Person) Filing Status: Single Pay Period Number of Exemptions Claimed on Statement 0 1 2 3 4 5 More Than 5 Daily 46.92 63.07 79.22 95.37 111.52 127.67 46.92 plus 16.15 for each dependent Weekly 234.62 315.39 396.16 476.93 557.70 638.47 234.62 plus 80.77 for each dependent Biweekly 469.23 630.77 792.31 953.85 1115.39 1276.93 469.23 plus 161.54 for each dependent Semimonthly 508.33 683.33 858.33 1033.33 1208.33 1383.33 508.33 plus 175 for each dependent Monthly 1016.67 1366.67 1716.67 2066.67 2416.67 2766.67 1016.67 plus 350 for each dependent Source: Internal Revenue Service. Carson Holiday has a federal tax levy of $4,119.90 against him. If Holiday is single with three personal exemptions and had a take-home pay of $1,020.00 this week, how much would his employer take from his pay to satisfy part of the tax levy? Round your intermediate calculations and final answer to the nearest cent. $__________________

FINANCIAL ACCOUNTING
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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  1. Example 6-4

    Borden Company received a federal tax levy on John Kline. Kline is single, claims 2 personal allowances, and had a takehome pay of $621.00 this week. The amount of the tax levy (in 2019) would be:

    Take-home pay $621.00
    Less: Exempt amount (from Figure 6.3). 396.16
    Federal tax levy $224.84


    Figure 6.3
    2019 Table for Amount Exempt for Tax Levy (Single Person)

    Filing Status: Single
    Pay
    Period    		 Number of Exemptions Claimed on Statement
    0 1 2 3 4 5 More Than 5
    Daily 46.92 63.07 79.22 95.37 111.52 127.67 46.92 plus 16.15 for
    each dependent
    Weekly 234.62 315.39 396.16 476.93 557.70 638.47 234.62 plus 80.77 for
    each dependent
    Biweekly 469.23 630.77 792.31 953.85 1115.39 1276.93 469.23 plus 161.54 for
    each dependent
    Semimonthly 508.33 683.33 858.33 1033.33 1208.33 1383.33 508.33 plus 175 for
    each dependent
    Monthly 1016.67 1366.67 1716.67 2066.67 2416.67 2766.67 1016.67 plus 350 for
    each dependent

    Source: Internal Revenue Service.

    Carson Holiday has a federal tax levy of $4,119.90 against him. If Holiday is single with three personal exemptions and had a take-home pay of $1,020.00 this week, how much would his employer take from his pay to satisfy part of the tax levy?

    Round your intermediate calculations and final answer to the nearest cent.

    $__________________

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