In 2023, Jack, age 12, has interest income of $8,220 on funds he inherited from his aunt and no earned income. He has noInvestment expenses. Christian and Danielle (his parents) have taxable income of $88,150 and file a joint return. Assume thatno parental election is made.Click here to access the 2023 tax rate schedule. If required, round the tax computations to the nearest dollar.Jack's net unearned Income isJack's allocable parental tax isJack's total tax is5,720 Single-Schedule XIf taxableincome is:Over-$0income is:Over-$022,00089,450190,750364,200462,500693,750But notover-$ 11,00044,72595,375182,100231,250578,12510%11,000$ 1,100.00 +12%44,7255,147.00 +22%95,37516,290.00+ 24%182,10037,104.00+ 32%231,25052,832.00+ 35%578,125174,238.25 + 37%*********Married filing jointly or Qualifying widow(er)-Schedule Y-1If taxableBut notover-The tax is:******The tax is:$ 22,00089,450$ 2,200.00+ 12%190,75010,294.00+ 22%364,20032,580.00 24%462,50074,208.00+ 32%693,750 105,664.00+ 35%186,601.50+ 37%2023 Tax Rate Schedules........10%of theamountover-$5of theamountover-011,00044,72595,375182,100231,250578,125022,00089,450190,750364,200462,500693,750Head of household-Schedule ZIf taxableincome is:Over-$ 015,70059,85095,350182,100231,250If taxableincome is:Over-$But notover-011,00044,72595,375182,100231,250346.875$ 15,70059,85095,350182,100231,250578,100.578,100172,623.50 +37%Married filing separately-Schedule Y-2But notover-$ 11,00044,72595,375182,100231,250346,875The taxis:..........10%$ 1,570.00+12 %6,868.00 +22%14,678.00+ 24%35,498.00+ 32%51,226.00+ 35%*******The tax is:10%$ 1,100.00+12%5,147,00+22%16,290.00 +24%37,104.00+ 32%52,832.00+ 35%93,300.75+ 37%of theamountover-$$015,70059,85095,350182,100231,250578,100of theamountover-011,00044,72595,375182,100231,250346,875

Gross Unearned Income of Jack = $8,220Kiddie Tax Exemption for 2023 = $2,500

Answered: In 2023, Jack, age 12, has interest…

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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In 2020 Morgan is unmarried and has no dependents. She has self-employment income of $80,000 and $5,000 in dividend income. Her tax return also shows: $1,700 for self-employed health insurance premiums $11,304 for self-employment taxes $7,500 in medical expenses not related to her self employment $9,000 in charitable contributions of property not related to her self employment Based on this information, what is her adjusted gross income? Select one: a. $79,348 b. $71,996 c. $55,496 d. $77,648
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