2021 Tax Rate SchedulesIndividualsSchedule X-SingleIf taxable income is over:But not over:The tax is:$ 0$ 9,950$ 40,525$ 86,375$ 164,925$ 209,425$ 523,60010% of taxable income$ 9,950$ 40,525$ 86,375$ 164,925$ 209,425$ 523,600$995 plus 12% of the excess over $9,950$4,664 plus 22% of the excess over $40,525$14,751 plus 24% of the excess over $86,375$33,603 plus 32% of the excess over $164,925$47,843 plus 35% of the excess over $209,425$157,804.25 plus 37% of the excess over $523,600Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)If taxable income is over:But not over:The tax is:$ 19,900$ 81,050$ 172,750$ 329,850$ 418,850$ 628,300$10% of taxable income$ 19,900$ 81,050$ 172,750$ 329,850$ 418,850$ 628,300$1,990 plus 12% of the excess over $19,900$9,328 plus 22% of the excess over $81,050$29,502 plus 24% of the excess over $172,750$67,206 plus 32% of the excess$95,686 plus 35% of the excess over $418,850$168,993.50 plus 37% of the excess over $628,300$329,850Schedule Z-Head of HouseholdIf taxable income is over:But not over:The tax is:$ 14,200$ 54,200$ 86,350$ 164,900$ 209,400$ 523,600$10% of taxable income$ 14,200$ 54,200$ 86,350$ 164,900$ 209,400$ 523,600$1,420 plus 12% of the excess over $14,200$6,220 plus 22% of the excess over $54,200$13,293 plus 24% of the excess over $86,350$32,145 plus 32% of the excess over $164,900$46,385 plus 35% of the excess over $209,400$156,355 plus 37% of the excess over $523,600 Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $250,000, of which$200,000 is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. (Use the tax rateschedule.)a. Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save Moana(ignore any Social Security, Medicare, or self-employment tax issues). (Do not round your intermediate calculations. Round your finalanswer to two decimal places.)Current tax savedb. How much income should be left in the corporation?Income left

Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $250,000, of which $200,000 is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. (Use the tax rate schedule.) a. Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save Moana (ignore any Social Security, Medicare, or self-employment tax issues). (Do not round your intermediate calculations. Round your final answer to two decimal places.) Current tax saved b. How much income should be left in the corporation? Income left

Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $250,000, of which $200,000 is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. (Use the tax rate schedule.) a. Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save Moana (ignore any Social Security, Medicare, or self-employment tax issues). (Do not round your intermediate calculations. Round your final answer to two decimal places.) Current tax saved b. How much income should be left in the corporation? Income left

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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