Exercise 4-26 (Algorithmic) (LO. 4) Determine the taxable amount of Social Security benefits for the following situations. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". a. Tyler and Candice are married and file a joint tax return. They have adjusted gross income of $39,200 before considering their Social Security benefits, no tax-exempt interest, and $13,720 of Social Security benefits. As a result, $ 7,030 X of the Social Security benefits are taxable. b. Assume Tyler and Candice have adjusted gross income of $17,200 before considering their Social Security benefits, no tax-exempt interest, and $18,920 of Social Security benefits. As a result, $ ✓of the Social Security benefits are taxable. 0 c. Assume Tyler and Candice have adjusted gross income of $119,500 before considering their Social Security benefits, no tax-exempt interest, and $17,925 of Social Security benefits. As a result, $ 15,236✔✔ of the Social Security benefits are taxable.

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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Exercise 4-26 (Algorithmic) (LO. 4)
Determine the taxable amount of Social Security benefits for the following situations.
If required, round your answers to the nearest dollar. If an amount is zero, enter "0".
a. Tyler and Candice are married and file a joint tax return. They have adjusted gross income of $39,200 before considering their Social
Security benefits, no tax-exempt interest, and $13,720 of Social Security benefits. As a result, $
7,030 X of the Social Security
benefits are taxable.
b. Assume Tyler and Candice have adjusted gross income of $17,200 before considering their Social Security benefits, no tax-exempt
interest, and $18,920 of Social Security benefits. As a result, $
0 ✓ of the Social Security benefits are taxable.
c. Assume Tyler and Candice have adjusted gross income of $119,500 before considering their Social Security benefits, no tax-exempt
interest, and $17,925 of Social Security benefits. As a result, $ 15,236✔ of the Social Security benefits are taxable.
Transcribed Image Text:Exercise 4-26 (Algorithmic) (LO. 4) Determine the taxable amount of Social Security benefits for the following situations. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". a. Tyler and Candice are married and file a joint tax return. They have adjusted gross income of $39,200 before considering their Social Security benefits, no tax-exempt interest, and $13,720 of Social Security benefits. As a result, $ 7,030 X of the Social Security benefits are taxable. b. Assume Tyler and Candice have adjusted gross income of $17,200 before considering their Social Security benefits, no tax-exempt interest, and $18,920 of Social Security benefits. As a result, $ 0 ✓ of the Social Security benefits are taxable. c. Assume Tyler and Candice have adjusted gross income of $119,500 before considering their Social Security benefits, no tax-exempt interest, and $17,925 of Social Security benefits. As a result, $ 15,236✔ of the Social Security benefits are taxable.
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