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. $124,000 from salary and wages (ordinary income). 2. $1,000 in interest income. 3. $2,000 in dividend income. 4. $3,000 in profit from sale of a stock they purchased two years ago. 5. $4,000 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 $ CETTE (Round to the nearest dollar).

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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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%
Print
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
Done
-
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% Print 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 Done - X
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. $124,000 from salary and wages (ordinary income).
2. $1,000 in interest income.
3. $2,000 in dividend income.
4. $3,000 in profit from sale of a stock they purchased two years ago.
5. $4,000 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 5
CETTE
(Round to the nearest dollar)
Transcribed Image Text: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. $124,000 from salary and wages (ordinary income). 2. $1,000 in interest income. 3. $2,000 in dividend income. 4. $3,000 in profit from sale of a stock they purchased two years ago. 5. $4,000 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 5 CETTE (Round to the nearest dollar)
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