Data table(Click the icon here in order to copy the contents of the data table below intoa spreadsheet.)TABLE 1.2: Tax Rates and Income Brackets for JointReturns (2018)Tax Rates10%12%22%24%32%35%37%PrintTaxable IncomeJoint 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 $622,050Over $622,050Done-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 5CETTE(Round to the nearest dollar)

The tax principles serve as guiding principles for policymakers, tax administrators, and taxpayers…

Answered: Mike and Julie Bedard are a working…

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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George and Wanda received $29,100 of Social Security benefits this year ($11,000 for George, $18.300 for Wanda). They also received $4,800 of interest from jointly owned City of Ranburne Bonds and dividend income. What amount of the Social Security benefits must George and Wanda include in their gross income under the following independent situations? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable. Required: a. George and Wanda file married joint and receive $8,750 of dividend income from stocks owned by George b. George and Wanda file married separate and receive $8,750 of dividend income from stocks owned by George c. George and Wands file married joint and receive $32.200 of dividend income from stocks owned by George d. George and Wanda file married joint and receive $16,100,of dividend income from stocks owned by George Complete this question by entering your answers in the…
Orie and Jane, husband and wife, operate a sole proprietorship. They expect their taxable income next year to be $450,000, of which $250,000 is attributed to the sole proprietorship. Orie and Jane are contemplating incorporating their sole proprietorship. (Use the tax rate schedule.) a) Using the married-joint tax brackets and corporate tax rate, find out how much current tax this strategy could save Orie and Jane. b) How much income should be left in the corporation?
n each of the following cases, discuss how the taxpayers might respond to a tax rate increase in a manner consistent with the income effect. a. Mr. Edwards earns $32,000 a year as an employee, and Mrs. Edwards doesn’t work.b. Mr. Frank earns $22,000 a year as an employee, and Mrs. Frank earns $10,000 a year as a self-employed worker.c. Mr. George earns $22,000 a year as an employee, and Mrs. George earns $10,000 a year as an employee.
Jane and Ed Rochester who are filing Married Filing Jointly are married with a 2-year-old child, who lives with them and whom they support financially. They normally take the standard deduction. What would be the 2023 Gross Income if Ed and Jane realized the following items of income and expense: Ed's Salary $ 35,000 Jane's Salary $100,000 Municipal bond interest income $400 Capital Loss on Investments of ($5,000) Ordinary Dividends $2500 Standard Deduction $27,700 Real property tax (from AGI) $10,000 Charitable contributions (from AGI) $7,000 $134,500 O $132,500 $122,500 $106,800
Check my work. Bill and Mary filed a joint Federal income tax return this year. Mary owns a 30% interest in MAJIC Partnership, a women’s dress boutique. Mary’s share of the partnership’s net income is $280,000. Her shares of the partnership’s W–2 wages and unadjusted basis of depreciable property are $100,000 and $300,000, respectively. Mary’s share of the partnership income is $280,000 * 20% = $56,000 50% of W-2 wages is $100,000*.5= $50,000 25% of W-2 wages plus 2.5% of adjusted basis of depr prop = $100,000 * 25% +$300,000 * 2.5% =$32,500 The QBI deduction is $50,000 per the limitation phase What is the maximum QBI deduction if MAJIC’s income was from qualified services and Bill and Mary’s total taxable income was $450,000? The QBI deduction can be used for qualified service businesses only if the taxable income before the QBI deduction does not exceed the threshold. Since MAJIC’s…
Check my work. 25 Bill and Mary filed a joint Federal income tax return this year. Mary owns a 30% interest in MAJIC Partnership, a women’s dress boutique. Mary’s share of the partnership’s net income is $280,000. Her shares of the partnership’s W–2 wages and unadjusted basis of depreciable property are $100,000 and $300,000, respectively. What is Bill and Mary’s maximum QBI deduction if their total taxable income is $300,000? Since their total taxable income is less than the threshold limit of $326,600, the deduction is calculated as 20%. $280,000 * 20% (QBI deduction) = $56,000 What is the maximum QBI deduction if Bill and Mary’s total taxable income is $450,000? Since $450,000 exceeds the threshold limit of $326,600, and above $100,000 over in the case of filing joint returns, the limitation phase is applicable.
In the current year, Larry gives $50,000 cash and $30,000 of stock to Mike. He also gives $40,000 of tax-exempt bonds to Angela. His wife , Susan , gives $200,000 of land to Angela and $20,000 cash to Pete. Assume the couple elects gift splitting for the current year. Larry's taxable gifts reported on his gift tax return total A. $170,000 B. $130,000 C. $125,000 D. $30,000
1. Peter and Renee, who file married filing jointly, recelved $30,200 of Social Security benefits this year ($12,000 for Peter, $18,200 for Renee). They also received $5.000 of interest from jointly owned City of Milwaukee bonds and $15,000 of dividend income from stocks owned by Peter. Their final gross income is: a. $15,000. b. $16,550. C. $21,550. d. $30,100. e. none of the above.
D George and Katherine Green are married with $146,000 in gross income from their jobs at the University of Wyoming. During the year they had $4,300 in adjustments. They had $23,000 in eligible 7.5% medical expenses and $14,000 in other itemized deductions. They have 2 eligible child. They had $10,000 worth of taxes withheld throughout the year. 0 Question 1 What is the Green household's Adjusted Gross Income? O $145,100 O $126.000 O $120,500 O $141.700 Question 2 How much are the Green household's itemized deductions? O $22,000 O $17,000 O $10,900 O $26,372.50 Question 3 What is the Green household's taxable income? O $93,827.50 O $115,327.50 O $103,400.00 O $97,605.50
Mr. and Mrs. Bachman, both age 65, file a joint return. In 2021, they have wages of $30,000, dividends of $6,200, and municipal bond interest of $3,000, and they received $10,300 for the sale of stock that cost $4,000 in 1992. They made a $3,000 contribution to their Roth IRA, paid $4,100 in deductible mortgage interest and real estate taxes, and made a $2,500 charitable contribution. What is their gross income, adjusted gross income, and taxable income?
Robin and Nissan are the owners of a gift shop. They are partners in a partnership of the shop. They share profits and losses equally under the partnership agreement. In addition, Robin receives salaries of $60,000 every year from the partnership for taking on the daily management role in the shop. In this income year, the partnership makes a loss of $90,000 after deducting the salaries paid to Gary. Required: Explain the tax implications of Robin and Nissan in this income year.
Jacob and Joria are married and file a joint return. They have the following items for the current year: Salaries $345,000 Loss on sale of § 1244 stock acquired 15 years ago 136,000 Gain on sale of § 1244 stock acquired ten months ago 44,000 Nonbusiness bad debt 12,000 Business bad debt 23,000 Determine their AGI for the current year. S-------

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