Problem 3-43 (LO. 9) Each year, Tom and Cindy Bates (married filing jointly) normally have itemized deductions of $22,000 (which includes an annual $4,000 pledge payment to their church). On the advice of a friend, they do the following: In early January 2020, they pay their pledge for 2019; during 2020, they pay their pledge for 2020; and in late December 2020, they prepay their pledge for 2021. a. What are the Bateses trying to accomplish? To have their itemized deductions exceed the standard deduction Feedback Check My Work In most cases, the choice between using the standard deduction and itemizing deductions from AGI is a simple matter-pick whichever yields the larger tax benefit. However, taxes might be saved by alternating between the two options by tax planning. b. What would the Bates' total itemized deductions be if all three church pledge payments were made in 2020? Assume that the itemized deductions of $22,000 already included one year of the church pledge payments. 30,000 V What will be the Bates' tax saving if their marginal tax bracket is 24% for all three years? (Assume that the standard deduction amounts for 2020 and 2021 are the same.) By concentrating their charitable contributions, their tax savings becomes $
Problem 3-43 (LO. 9) Each year, Tom and Cindy Bates (married filing jointly) normally have itemized deductions of $22,000 (which includes an annual $4,000 pledge payment to their church). On the advice of a friend, they do the following: In early January 2020, they pay their pledge for 2019; during 2020, they pay their pledge for 2020; and in late December 2020, they prepay their pledge for 2021. a. What are the Bateses trying to accomplish? To have their itemized deductions exceed the standard deduction Feedback Check My Work In most cases, the choice between using the standard deduction and itemizing deductions from AGI is a simple matter-pick whichever yields the larger tax benefit. However, taxes might be saved by alternating between the two options by tax planning. b. What would the Bates' total itemized deductions be if all three church pledge payments were made in 2020? Assume that the itemized deductions of $22,000 already included one year of the church pledge payments. 30,000 V What will be the Bates' tax saving if their marginal tax bracket is 24% for all three years? (Assume that the standard deduction amounts for 2020 and 2021 are the same.) By concentrating their charitable contributions, their tax savings becomes $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:om/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
它☆
to Ta>
еBook
19
Problem 3-43 (LO. 9)
Each year, Tom and Cindy Bates (married filing jointly) normally have itemized deductions of $22,000 (which includes an annual $4,000
pledge payment to their church). On the advice of a friend, they do the following: In early January 2020, they pay their pledge for 2019;
during 2020, they pay their pledge for 2020; and in late December 2020, they prepay their pledge for 2021.
a. What are the Bateses trying to accomplish?
To have their itemized deductions exceed the standard deduction
Feedback
Check My Work
In most cases, the choice between using the standard deduction and itemizing deductions from AGI is a simple matter-pick whichever yields
the larger tax benefit. However, taxes might be saved by alternating between the two options by tax planning.
b. What would the Bates' total itemized deductions be if all three church pledge payments were made in 2020? Assume that the itemized
deductions of $22,000 already included one year of the church pledge payments.
30,000 V
What will be the Bates' tax saving if their marginal tax bracket is 24% for all three years?
(Assume that the standard deduction amounts for 2020 and 2021 are the same.)
By concentrating their charitable contributions, their tax savings becomes
Previous
Next
Check My Work
6:14 PM
59°F Light rain
1/9/2022
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education