Lexy Ballinger and her four-year-old son currently live in an apartment owned by Lexy’s parents. Her parents charge her very little for rent—$200 per month for a luxurious two-bedroom townhouse. Lexy works at a local hospital as a physician’s assistant, where she earns $45,200 per year. She has no deductions to itemize. a. What is Lexy’s tax liability? b. How would Lexy’s tax liability change if she had a $15,000 automobile loan with monthly payments equal to $484 and the interest paid on the loan this year was $1,300?
Lexy Ballinger and her four-year-old son currently live in an apartment owned by Lexy’s parents. Her parents charge her very little for rent—$200 per month for a luxurious two-bedroom townhouse. Lexy works at a local hospital as a physician’s assistant, where she earns $45,200 per year. She has no deductions to itemize. a. What is Lexy’s tax liability? b. How would Lexy’s tax liability change if she had a $15,000 automobile loan with monthly payments equal to $484 and the interest paid on the loan this year was $1,300?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 1: Personal Taxes
Lexy Ballinger and her four-year-old son currently live in an apartment owned by Lexy’s
parents. Her parents charge her very little for rent—$200 per month for a luxurious two-bedroom
townhouse. Lexy works at a local hospital as a physician’s assistant, where she earns $45,200 per
year. She has no deductions to itemize.
a. What is Lexy’s tax liability?
b. How would Lexy’s tax liability change if she had a $15,000 automobile loan with
monthly payments equal to $484 and the interest paid on the loan this year was $1,300?
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