Peter's gross income is $80,000 a year, and Wendy earns $100,000 a year. They put $3,000each into an IRA. They are a married couple and have two children, so that they can have a childtax credit $2,000 per child. Peter and Wendy decided to file taxes jointly, and this year standarddeduction for married taxpayers is $24,400.a. How much is the gross income?b. How much is the adjusted gross income (AGI)?c. How much is the taxable income?d. How much do they have to pay in taxes? (Total tax payment)e. Suppose that the government withheld $16,000 from Peter's earnings and $20,000 fromWendy's. What is the final payment (refund) due?Marginal tax rateif married, filling jointly3735322422121019,400 78,950168,400321,450408,200612,350Taxable Income|| |

a. Gross income = Peter’s gross income + Wandy gross income = $80000 + $100000 = $180000 b.…

Answered: Peter's gross income is $80,000 a year,…

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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