Please explain the subparts to understand, thank you. Problem #2. Your uncle has a taxable income of $85,311 last year. (a) If he files as a head of household, what is his tax liability. (Use Table 18-3 and example 11 from Chapter 18 as a guide.) (b) What would be your uncle's tax liability if he were to file his taxes as married filing jointly.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Please explain the subparts to understand, thank you.
Problem #2. Your uncle has a taxable income of $85,311 last year.
(a) If he files as a head of household, what is his tax liability. (Use Table 18-3 and example 11 from Chapter 18 as a guide.)
(b) What would be your uncle's tax liability if he were to file his taxes as married filing jointly.
![## Example 11: Using the Tax Rate Tables
Elizabeth Ashcroft had taxable income last year of $121,334. For income tax purposes, she files as married filing separately. Use the appropriate table to calculate her tax liability.
### Solution Strategy
**Step 1**
We’ll use the table for those with filing status "Married filing Separately."
**Step 2**
Reading down the first column, we find Elizabeth’s taxable income in the range “Over $82,500 but not over $157,500.”
**Step 3**
\[
\text{Tax} = 14,089.50 + .24(121,334 - 82,500)
\]
\[
= 14,089.50 + .24(38,834)
\]
\[
= 14,089.50 + 9,320.16
\]
\[
= \$23,409.66
\]
### Try It Exercise 11
Mike Straus had taxable income of $56,500 last year. If he files as single, what is his tax liability?
**Answer**
From the table for single filers:
\[
\text{Tax} = 4,453.50 + .22(56,500 - 38,700)
\]
\[
= 4,453.50 + .22(17,800)
\]
\[
= 4,453.50 + 3,916
\]
\[
= \$8,369.50
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 alt="### Exhibit 18-3: Income Tax Rate Tables
#### Filing status: Single
**Taxable income** | **Tax**
--- | ---
At least $0 but not over $9,525 | 10% of the amount over $0
Over $9,525 but not over $38,700 | $952.50 + 12% of the amount over $9,525
Over $38,700 but not over $82,500 | $4,453.50 + 22% of the amount over $38,700
Over $82,500 but not over $157,500 | $14,089.50 + 24% of the amount over $82,500
Over $157,500 but not over $200,000 | $32,089.50 + 32% of the amount over $157,500
Over $200,000 but not over $500,000 | $45,689.50 + 35% of the amount over $200,000
Over $500,000 | $150,689.50 + 37% of the amount over $500,000
#### Filing status: Married filing jointly or Qualifying widow(er)
**Taxable income** | **Tax**
--- | ---
At least $0 but not over $19,050 | 10% of the amount over $0
Over $19,050 but not over $77,400 | $1,905 + 12% of the amount over $19,050
Over $77,400 but not over $165,000 | $8,907 + 22% of the amount over $77,400
Over $165,000 but not over $315,000 | $28,179 + 24% of the amount over $165,000
Over $315,000 but not over $400,000 | $64,179 + 32% of the amount over $315,000
Over $400,000 but not over $600,000 | $91,379 + 35% of the amount over $400,000
Over $600,000 | $161,379 + 37% of the amount over $600,000
#### Filing status: Married filing separately
**Taxable income** | **Tax**
--- | ---
At least $0 but not over $9,525 | 10% of the amount over $0
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