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Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $125,000 from salary and wages (ordinary income). 2. $3,000 in interest income. 3. $3,000 in dividend income. 4. $3,000 in profit from sale of a stock they purchased two years ago. 5. $5,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2,, to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income. taxed differently than ordinary income.) c. How much will Mike and Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? a. The amount Mike and Julie will pay federal income taxes on 2, their interest income, is $. (Round to the nearest dollar.) b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $. (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $. (Round to the nearest dollar.)

Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $125,000 from salary and wages (ordinary income). 2. $3,000 in interest income. 3. $3,000 in dividend income. 4. $3,000 in profit from sale of a stock they purchased two years ago. 5. $5,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2,, to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income. taxed differently than ordinary income.) c. How much will Mike and Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? a. The amount Mike and Julie will pay federal income taxes on 2, their interest income, is $. (Round to the nearest dollar.) b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $. (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $. (Round to the nearest dollar.)

FINANCIAL ACCOUNTING
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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Question list Question 1 Question 2 K Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $125,000 from salary and wages (ordinary income). 2. $3,000 in interest income. 3. $3,000 in dividend income. 4. $3,000 in profit from sale of a stock they purchased two years ago. 5. $5,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2,, to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income is taxed differently than ordinary income.) c. How much will Mike and Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? a. The amount Mike and Julie will pay in federal income taxes on 2, their interest income, is $ b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $ ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $ d. The amount Mike and Julie will pay in federal income taxes on 5, the profit on the sale of stock they purchased and sold this year, is $ (Round to the nearest dollar.) (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than (Round to the nearest dollar.) (Round to the nearest dollar.)
Transcribed Image Text:Question list Question 1 Question 2 K Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $125,000 from salary and wages (ordinary income). 2. $3,000 in interest income. 3. $3,000 in dividend income. 4. $3,000 in profit from sale of a stock they purchased two years ago. 5. $5,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2,, to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income is taxed differently than ordinary income.) c. How much will Mike and Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? a. The amount Mike and Julie will pay in federal income taxes on 2, their interest income, is $ b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $ ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $ d. The amount Mike and Julie will pay in federal income taxes on 5, the profit on the sale of stock they purchased and sold this year, is $ (Round to the nearest dollar.) (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than (Round to the nearest dollar.) (Round to the nearest dollar.)
Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) TABLE 1.2: Tax Rates and Income Brackets for Joint Returns (2018) Tax Rates 10% 12% 22% 24% 32% 35% 37% Taxable Income Joint Returns $0 to $19,750 $19,751 to $80,250 $80,251 to $171,050 $171,051 to $326,600 $326,601 to $414,700 $414,701 to $622,050 Over $622,050 I X
Transcribed Image Text:Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) TABLE 1.2: Tax Rates and Income Brackets for Joint Returns (2018) Tax Rates 10% 12% 22% 24% 32% 35% 37% Taxable Income Joint Returns $0 to $19,750 $19,751 to $80,250 $80,251 to $171,050 $171,051 to $326,600 $326,601 to $414,700 $414,701 to $622,050 Over $622,050 I X
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