Mrs. Esposito, a petroleum engineer, earns an $60,500 annual salary, while Mr. Esposito has no earned income. Under current law, thecouple pays 20 percent in state and federal income tax. Because of recent tax law changes, the couple's future tax rate will increase to28 percent. If Mrs. Esposito decides to take a part-time job because of the rate increase, how much income must she earn to maintainthe couple's after-tax disposable income?Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.Answer is complete but not entirely correct.$ 67,222 XAdditional income before tax

Disposable income is the money that remains after taxes have been paid or subtracted. Disposable…

Answered: Mrs. Esposito, a petroleum engineer,…

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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Similar questions

Mr. Esposito, a petroleum engineer, earns an $84,500 annual salary, while Mrs. Esposito, a homemaker, has no earned income. Under current law, the couple pays 20 percent in state and federal income tax. Because of recent tax law changes, the couple’s future tax rate will increase to 28 percent. If Mrs. Esposito decides to take a part-time job because of the rate increase, how much income must she earn to maintain the couple’s after-tax disposable income? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Karen most had a federal tax levy of 2100.50 against her. If Most is single with two personal exemptions and had take home pay of 499 this week, how much would her employer take from her pay to satisfy part of the tax levy?
Karen Most has a federal tax levy of $2,100.50 against her. If Most is single with two personal exemptions and had a take-home pay of $499.00 this week, how much would her employer take from her to satisfy part of the tax levy?
Bruce and Amanda are married during the tax year. Bruce is a botanist at Green Corporation. Bruce earns a salary of $56,000 per year. Green Corporation has an accountable reimbursement plan. During the year, Bruce has $5,000 of employee expenses. Green Corporation reimburses Bruce for only $4,000 of expenses. Bruce decides to put $5,500 into a Traditional IRA. Amanda owns a financial consulting firm as a sole proprietor (it qualifies as a full trade or business). Amanda generates $80,000 of revenues during the year. She has the following business payments associated with her firm: Utilities: $2,000 Office Rent: $14,000 Self-Employment Tax: $5,000 Salary for her secretary: $20,000 Fines/Penalties: $8,000 Payroll Taxes (Employer Portion): $1,000 Business Meals: $2,000 Bribe to police officer to forgive parking violation $1,500 Due to the income and expenses above, Amanda has $39,500 of Qualified Business Income for the purposes of the QBI deduction. Also, during the year a tornado…
Robert and Maisie have one child, Gillie (4). Both parents work full time, and their AGI in 2020 was $194,375. During the year, they paid $8,140 in childcare expenses for Gillie. Robert's employer has decided to offer a daycare flexible spending account (FSA) option for 2021. What would you recommend, and why? I n the end, either option is a good choice because they both reduce their tax. They can claim $5,000 on the FSA and then claim the remaining $3,140 against the Child and Dependent Care Credit. Therefore, Robert should open the FSA. Because their marginal tax rate + FICA tax is more than the Child and Dependent Care Credit percentage they would receive, the FSA is a better option. Robert should not open the FSA; since he would only be able to fund up to $5,000, it wouldn't cover all their expenses.
Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $400,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until November 1 of year 1, when they sold the home for $500,000. The Pratts' marginal ordinary tax rate is 35 percent. (Leave no answer blank. Enter zero if applicable.) b. Assume the Pratts sell the home because Stephanie's employer transfers her to an office in Utah. How much gain will the Pratts recognize on their home sale? Recognized gain
Morgan is paid $2,955.75 per week. What is the amount of federal income tax withheld from Morgan's paycheck under the following conditions? Assume that Morgan has only one job or that step 2 of Form W-4 is not checked. Also, her employer uses the Percentage Method Tables for Automated Systems. Use percentage method tables for automated systems. Required: a. Morgan is single, with no dependents. b. Morgan is married (spouse does not work) and claims two dependents who are under the age of 17. c. Morgan is single, claims no dependents, but wants $50 in additional withholding. Note: For all requirements, round your intermediate computations and final answers to 2 decimal places. × Answer is not complete. a. Federal income tax withholdings b. Federal income tax withholdings c. Federal income tax withholdings Amount 295.58 X
Clarence is an employee at the Drake Candy Corporation, an S corporation. Clarence and other employees are covered under a disability income plan that will pay him 50% of his $96,000 salary if he becomes disabled. The company adds the pro rata cost of the plan to each employee's W-2. Clarence is in the 25% income tax bracket. What is the amount of monthly disability benefits Clarence will receive after tax if he remains in the same tax bracket when disabled? 1. $2,250. 2. $3,000. 3. $3,500. 4. $4,000. Ⓒ$4,000. $3,500. $2,250. Ⓒ$3,000.
Bruce and Amanda are married during the tax year. Bruce is a botanist at Green Corporation. Bruce earns a salary of $56,000 per year. Green Corporation has an accountable reimbursement plan. During the year, Bruce has $5,000 of employee expenses. Green Corporation reimburses Bruce for only $4,000 of expenses.Bruce decides to put $5,500 into a Traditional IRA. Amanda owns a financial consulting firm as a sole proprietor (it qualifies as a full trade or business). Amanda generates $80,000 of revenues during the year. She has the following business payments associated with her firm:● Utilities: $2,000● Office Rent: $14,000● Self-Employment Tax: $5,000● Salary for her secretary: $20,000● Fines/Penalties: $8,000● Payroll Taxes (Employer Portion): $1,000● Business Meals: $2,000● Bribe to police officer to forgive parking violation $1,500Due to the income and expenses above, Amanda has $39,500 of Qualified Business Income. Also, during the year a tornado damaged the roof of their personal…
Carson Holiday has a federal tax levy of $4,119.90 against him. If Holiday is single with three personal exemptions and had a take-home pay of $1,020.00 this week, how much would his employer take from his pay to satisfy part of the tax levy?
Morgan is paid $2,700 per week. What is the amount of federal income tax withheld from Morgan's paycheck under the following conditions? Assume that Morgan has only one job or that step 2 of Form W-4 is not checked. Also, her employer uses the Percentage Method Tables for Automated Systems. Use percentage method tables for automated systems. Required: a. Morgan is single and no dependents. b. Morgan is married (spouse does not work) and claims two dependents who are under the age of 17. c. Morgan is single, claims no dependents, but wants $60 in additional withholding.
Chris’s husband, George, moved out of their home in February of 2022. She had no contact with him since he moved out. Chris and George are not legally separated. Chris has one child, Mary, age 9. She will claim Mary as a dependent on her 2022 tax return. Chris is 31 years old. Chris earned $36,200 in wages and received $50 of interest. Chris was out of work for a month and received unemployment income of $1,800. Chris paid all the costs of keeping up her home. She provided over half of the support for Mary. They all are U.S. citizens and have valid social security numbers. They lived in the U.S. all year. 1. What is the most beneficial of the following filing statuses that Chris is eligible to claim on her 2022 tax return? 2. 2. Based on the information provided, Chris qualifies for the earned income credit. (T/F) 3. What amount of Chris's unemployment compensation is taxable? $______________

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