Kaori, an unmarried individual with no dependent children, reports the following information. Assume the taxable year is 2022. Use Individual Tax Rate Schedules and Standard Deduction Table. Wages Schedule C net profit Interest from savings account Self-employment tax on Schedule C net profit $ 65,000 11,650 500 1,646 Required: a. Assume that Kaori's itemized deductions total $9,000 and Schedule C net business profit is qualified business income (non-service). Compute AGI and taxable income. b. Assume that Kaori's itemized deductions total $14,000 and Schedule C net business profit is qualified business income (non-service). Compute AGI and taxable income.

Kaori, an unmarried individual with no dependent children, reports the following information. Assume the taxable year is 2022. Use Individual Tax Rate Schedules and Standard Deduction Table. Wages Schedule C net profit Interest from savings account Self-employment tax on Schedule C net profit $ 65,000 11,650 500 1,646 Required: a. Assume that Kaori's itemized deductions total $9,000 and Schedule C net business profit is qualified business income (non-service). Compute AGI and taxable income. b. Assume that Kaori's itemized deductions total $14,000 and Schedule C net business profit is qualified business income (non-service). Compute AGI and taxable income.

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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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Kaori, an unmarried individual with no dependent children, reports the following information. Assume the taxable year is
2022. Use Individual Tax Rate Schedules and Standard Deduction Table.
Wages
Schedule C net profit
Interest from savings account
Self-employment tax on Schedule C net profit
Required:
a. Assume that Kaori's itemized deductions total $9,000 and Schedule C net business profit is qualified business income
(non-service). Compute AGI and taxable income.
b. Assume that Kaori's itemized deductions total $14,000 and Schedule C net business profit is qualified business income
(non-service). Compute AGI and taxable income.
Complete this question by entering your answers in the tabs below.
$ 65,000
11,650
500
1,646
Required A Required B
Assume that Kaori's itemized deductions total $9,000 and Schedule C net business profit is qualified business income (non-
service). Compute AGI and taxable income.
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
AGI
Taxable Income
Amount
Required A
Required B >

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