Jurisdiction X levies a flat 14 percent tax on individual income in excess of $35,000 per year. Individuals who earn $35,000 or less payno income tax.Required:a. Mr. Hill earned $87,700 income this year. Compute Mr. Hill's income tax, and determine average and marginal tax rate.b. Ms. Lui earned $41,600 income this year. Compute Ms. Lui's income tax and determine average and marginal tax rate.c. Ms. Archer earned $30,400 income this year and paid no income tax. Describe Ms. Archer's average and marginal tax rate.d. What type of rate structure does Jurisdiction X use for its individual income tax?Complete this question by entering your answers in the tabs below.Req A to CReq Da. Mr. Hill earned $87,700 income this year. Compute Mr. Hill's income tax, and determine average and marginal tax rate.b. Ms. Lui earned $41,600 income this year. Compute Ms. Lui's income tax and determine average and marginal tax rate.c. Ms. Archer earned $30,400 income this year and paid no income tax. Describe Ms. Archer's average and marginal tax rate.Note: For all requirements, round average tax rate answer to 1 decimal place.a. Income taxa. Average tax rate7,3788.4 %Show less A

Given,Tax Rate = 14%No Tax till $35,000.

Answered: Jurisdiction X levies a flat 14 percent…

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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A single person with taxable income of $117064 will have the first $9,525 of that income taxed at a different rate than the income between $9,525 and $38,700. The first bracket is taxed at 10%, the second is taxed at 12% Determine the taxes owed on just the second bracket.
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Manny, a single taxpayer, earns $65,600 per year in taxable income and an additional $12,060 per year in city of Boston bonds. What is Manny's current marginal tax rate for 2021? (Use tax rate schedule.) Multiple Choice 11.23 percent 12.00 percent 12.93 percent 15.34 percent None of the choices are correct.
Louis files as a single taxpayer. In April of this year he received a $980 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,400. (Leave no answer blank. Enter zero if applicable.) Problem 5-51 Part-b (Algo) b. Last year Louis had itemized deductions of $9,810 and he chose to claim the standard deduction. Louis’s itemized deductions included state income taxes paid of $2,335 and no other state or local taxes. Refund to be included in gross income- _______
Louis files as a single taxpayer. In April of this year he received a $980 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,400. (Leave no answer blank. Enter zero if applicable.) Problem 5-51 Part-c (Algo) c. Last year Louis claimed itemized deductions of $13,450. Louis’s itemized deductions included state income taxes paid of $3,870 and no other state or local taxes. Refund to be included in gross income - ________
A taxpayer pays 22% on the federal return for their ordinary income (including some short-term capital gains) and 15% on some long term capital gains. Assuming that the income is equally taxable to California and that the California ordinary income tax bracket for the same taxpayer is 9.3%; What rates are going to be used for taxing the long-term capital gains for the State? O 0%. LTCG rates in the 9.3% bracket are zero for those gains. O 9.3% on all income that qualifies in that bracket. The State doesn't give preferential treatment to capital gains. O 1%. The LTCG rates for all gains are a single percentage point. O 4%. LTCG rates are two brackets lower for long-term gains. Next
n each of the following cases, discuss how the taxpayers might respond to a tax rate increase in a manner consistent with the income effect. a. Mr. Edwards earns $32,000 a year as an employee, and Mrs. Edwards doesn’t work.b. Mr. Frank earns $22,000 a year as an employee, and Mrs. Frank earns $10,000 a year as a self-employed worker.c. Mr. George earns $22,000 a year as an employee, and Mrs. George earns $10,000 a year as an employee.
US Tax Law Taxpayer is single and has the following items: state taxes withheld, $7,500; property taxes $6,000; DMV, $500. His state tax deduction on schedule A would be A. $14,000 B. $13,500 C. $6500 D. $10,000 E. Some other amount
During the year, Frank paid the following taxes: Federal Income Tax: $17,000 Social Security Tax: $5,000 State Income Tax: $5,000 Property Tax on Home: $3,500 How much of the above amounts is Frank entitled to deduct? Group of answer choices $3,500. $8,500. $17,000. $30,500.
Determine the amount of the child tax credit in each of the following cases: Answer is complete but not entirely correct. a. A single parent with modified AGI of $214,200 and one child age 4. b. A single parent with modified AGI of $78,800 and three children ages 7, 9, and 12. c. A married couple, filing jointly, with modified AGI of $408.733 and two children age 14 and 16. d. A married couple, filing jointly, with modified AGI of $132,855 and one child, age 13. Child Tax Credit Allowed $ $ $ 19 $ 1,900 x 9,000 x 6,000 x 3,000
11.A taxpayer is claiming tax preparation expense as a legal and professional fee. They paid $430 at your office last year. The forms breakdown by cost is as follows: Form 1040- $100 Form Sch. C- $125 Form SE- $55 Form 8867- $75 Form 8863- $75 What is the correct amount that can be deducted on their Schedule C for the current year? Choose one answer. a. $280 b. $180 c. $355 d. $430

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