Marlene, age 52, is not married and has salary income of $210,000 during 2020. She pays for all of the support for her 82-year old mother who lives in an assisted living facility and qualifies as Marlene's dependent during 2020. Marlene also has rental income of $7,000 and deductions toward AGI of $9,000 during 2020. Marlene's potentially allowable itemized deductions during 2020 would be $17,830. Marlene's employer withheld $43,500 of federal income tax from her salary in 2020. Based on this information, and ignoring any net investment income tax, compute: (1) Marlene's regular taxable income and tax liability on that taxable income for 2020, and (2) the amount of tax that she still owes or the refund that is due to her after all allowable credits and withholding for 2020.

Marlene, age 52, is not married and has salary income of $210,000 during 2020. She pays for all of the support for her 82-year old mother who lives in an assisted living facility and qualifies as Marlene's dependent during 2020. Marlene also has rental income of $7,000 and deductions toward AGI of $9,000 during 2020. Marlene's potentially allowable itemized deductions during 2020 would be $17,830. Marlene's employer withheld $43,500 of federal income tax from her salary in 2020. Based on this information, and ignoring any net investment income tax, compute: (1) Marlene's regular taxable income and tax liability on that taxable income for 2020, and (2) the amount of tax that she still owes or the refund that is due to her after all allowable credits and withholding for 2020.

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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