Problem 16-31 (Algo) [LO 16-5, 16-9] In 2000, Ms. Ennis, a head of household, contributed $43,000 in exchange for 430 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 430 shares for $99,000. Her only other investment income was an $8,000 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $527,000. Assume the taxable year is 2024. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: a. Compute Ms. Ennis's income tax and Medicare contribution tax for the year. b. How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000? c. How would the computation change if Ms. Ennis acquired the Seta stock in 2022 instead of 2000? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Amount Taxable income $ 535,000 Total income tax $ 1,600 × Medicare contribution tax $ 304 Total tax $ 1,904 × < Required A Required C >
Problem 16-31 (Algo) [LO 16-5, 16-9] In 2000, Ms. Ennis, a head of household, contributed $43,000 in exchange for 430 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 430 shares for $99,000. Her only other investment income was an $8,000 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $527,000. Assume the taxable year is 2024. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: a. Compute Ms. Ennis's income tax and Medicare contribution tax for the year. b. How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000? c. How would the computation change if Ms. Ennis acquired the Seta stock in 2022 instead of 2000? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Amount Taxable income $ 535,000 Total income tax $ 1,600 × Medicare contribution tax $ 304 Total tax $ 1,904 × < Required A Required C >
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 54P
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![Problem 16-31 (Algo) [LO 16-5, 16-9]
In 2000, Ms. Ennis, a head of household, contributed $43,000 in exchange for 430 shares of Seta stock. Seta is a qualified small
business. This year, Ms. Ennis sold all 430 shares for $99,000. Her only other investment income was an $8,000 long-term capital gain
from the sale of land. Her taxable income before consideration of her two capital transactions is $527,000. Assume the taxable year is
2024. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends.
Required:
a. Compute Ms. Ennis's income tax and Medicare contribution tax for the year.
b. How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000?
c. How would the computation change if Ms. Ennis acquired the Seta stock in 2022 instead of 2000?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required A Required B
Required C
How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000?
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
Amount
Taxable income
$
535,000
Total income tax
$
1,600 ×
Medicare contribution tax
$
304
Total tax
$
1,904 ×
< Required A
Required C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc70f8b81-b486-4eba-b58f-14b3a97ce72b%2Fbb255480-a945-4fa6-bf91-cdd0fa3212fc%2F4cktyvc_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 16-31 (Algo) [LO 16-5, 16-9]
In 2000, Ms. Ennis, a head of household, contributed $43,000 in exchange for 430 shares of Seta stock. Seta is a qualified small
business. This year, Ms. Ennis sold all 430 shares for $99,000. Her only other investment income was an $8,000 long-term capital gain
from the sale of land. Her taxable income before consideration of her two capital transactions is $527,000. Assume the taxable year is
2024. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends.
Required:
a. Compute Ms. Ennis's income tax and Medicare contribution tax for the year.
b. How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000?
c. How would the computation change if Ms. Ennis acquired the Seta stock in 2022 instead of 2000?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required A Required B
Required C
How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000?
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
Amount
Taxable income
$
535,000
Total income tax
$
1,600 ×
Medicare contribution tax
$
304
Total tax
$
1,904 ×
< Required A
Required C >
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