Grace Kelley earns $2,000 per week. She is married and claims 2 exemptions. What is Grace’s income tax? Use the percentage method (Use Table 7.1 and Table 7.2). (Round your final answer to the nearest cent.) (a) SINGLE person (includingIf the amount of wages(after subtractingwithholding allowances) is:Not over $44..Over-$44$222$764$1,789$3,685 -$7,958$7,958-$7,990.$7,990$88$443$1,529$3,579$7,369$15,915$15,981But not over--$222-$764-$1,789.-$3,685..(a) SINGLE person (including head of household)-If the amount of wages(after subtractingwithholding allowances) is:Not over $88....Over-$96$480$1,656$3,877$7,983$17,242$17,313But not over-$192$960$3,313-$443-$1,529-$3,579-$7,369-$15,915-$15,981.head of household)-The amount of income taxto withhold is:$0(a) SINGLE person (includingIf the amount of wages(after subtractingwithholding allowances) is:Not over $96Over-Percentage Method Tables for Income Tax WithholdingTABLE 1-WEEKLY Payroll Period$0.00 plus 10%$17.80 plus 15%$99.10 plus 25%$355.35 plus 28%$886.23 plus 33%$2,296.32 plus 35%$2,307.52 plus 39.6%But not over--$960..-$3,313-$7,754$7,754 -$15,967.$15,967 -$34,483$34,483 -$34,625$34,625The amount of income taxto withhold is:$0$0.00 plus 10%$35.50 plus 15%$198.40 plus 25%(a) SINGLE person (includingIf the amount of wages(after subtractingwithholding allowances) is:Not over $192Over-$710.90 plus 28%$1,772.10 plus 33%$4,592.28 plus 35%$4,615.38 plus 39.6%But not over--$480 $0.00 plus 10%-$1,656 $38.40 plus 15%-$3,877. $214.80 plus 25%-$7,983. $770.05 plus 28%-$17,242 $1,919.73 plus 33%-$17,313.$4,975.20 plus 35%$5,000.05 plus 39.6%head of household)-The amount of income taxto withhold is:$0(b) MARRIED person-If the amount of wages(after subtractingwithholding allowances) is:Not over $165...$0.00 plus 10%$76.80 plus 15%$429.75 plus 25%$1,540.00 plus 28%$3,839.64 plus 33%$9,949.92 plus 35%$9,999.62 plus 39.6%of excess over-Over--$44$165-$222 $520-$764 $1,606-$1,789 $3,073-$3,685 $4,597-$7,958 $8,079 -$9,105.-$7,990 $9,105TABLE 2-BIWEEKLY Payroll Periodhead of household)-The amount of income taxto withhold is:50But not over--$520.-$1,606..-$3,073of excess over-Over--$88 $331-$443 $1,040-$1,529 $3,212-$3,579 $6,146But not over--$1,040 $0.00 plus 10%-$3,212.. $70.90 plus 15%-$6,146. $396.70 plus 25%-$9,194 $1,130.20 plus 28%-$7,369 $9,194 -$16,158. $1,983.64 plus 33%$4,281.76 plus 35%$4,999.96 plus 39.6%-$15,915 $16,158-$18,210..-$15,981 $18,210.TABLE 3-SEMIMONTHLY Payroll Period$0.00 plus 10%$35.50 plus 15%$198.40 plus 25%-$4,597.$565.15 plus 28%-$8,079. $991.87 plus 33%$2,140.93 plus 35%$2,500.03 plus 39.6%(b) MARRIED person-If the amount of wages(after subtractingwithholding allowances) is:Not over $331...(b) MARRIED person-If the amount of wages(after subtractingwithholding allowances) is:Not over $358of excess over-Over--$96 $358-$480 $1,127-$1,656 $3,479But not over--$1,127..-$3,479..-$6,658-$9,960-$3,877 $6,658-$7,983 $9,960 -$17,504-$17,242 $17,504 -$19,727.-$17,313 $19,727TABLE 4-MONTHLY Payroll PeriodThe amount of income taxto withhold is:$0(b) MARRIED person-If the amount of wages(after subtractingwithholding allowances) is:Not over $717of excess over-Over--$192 $717-$960 $2,254-$3,313 $6,958-$7,754 $13,317-$15,967 $19,921-$34,483 $35,008 -$39,454-$34,625 $39,454The amount of income taxto withhold is:$0of excess over--$165-$520-$1,606-$3,073-$4,597-$8,079-$9,105$0.00 plus 10%$76.90 plus 15%$429.70 plus 25%$1,224.45 plus 28%$2,149.01 plus 33%$4,638.53 plus 35%$5,416.58 plus 39.6%The amount of income taxto withhold is:$0of excess over--$331-$1,040-$3,212-$6,146But not over--$2,254.. $0.00 plus 10%-$6,958. $153.70 plus 15%-$13,317 $859.30 plus 25%-$19,921. $2,449.05 plus 28%-$35,008. $4,298.17 plus 33%$9,276.88 plus 35%$10,832.98 plus 39.6%The amount of income taxto withhold is:$0-$9,194-$16,158-$18,210of excess over--$358-$1,127-$3,479-$6,658-$9,960-$17,504-$19,727of excess over--$717-$2,254-$6,958-$13,317-$19,921-$35,008-$39,454 Payroll PeriodWeekly ..BiweeklySemimonthlyMonthlyQuarterlySemiannuallyAnnually...Daily or miscellaneous (each day of the payrollperiod). . . .One WithholdingAllowance$ 76.90153.80166.70333.301,000.002,000.004,000.0015.40

The total amount of taxes that are owed to federal, state, and local governments by individuals and organizations for a specific time period is referred to as their tax liability. Tax liabilities are considered to be short-term liabilities for businesses because they are recorded on a balance sheet and must be paid off within one year.Weekly Taxable Income = Weekly Payment - Weekly Withholding Weekly Taxable Income = 2,000 - 76.90 Weekly Taxable Income = 1,923.10 + Tax Liability = 198.40 + [(1,923.10 - 1606) x 25%] Tax Liability = 198.40 + 79.275 Tax Liability = 277.68

Business

Accounting

Grace Kelley earns $2,000 per week. She is married and claims 2 exemptions. What is Grace’s income tax? Use the percentage method (Use Table 7.1 and Table 7.2). (Round your final answer to the nearest cent.)

Grace Kelley earns $2,000 per week. She is married and claims 2 exemptions. What is Grace’s income tax? Use the percentage method (Use Table 7.1 and Table 7.2). (Round your final answer to the nearest cent.)

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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