Procedure and Analysis: 1. For taxable incomes of $100,000 or less, the 1040 Forms & Instructions booklet displays tax tables with the income tax previously calculated for the applicable income level (up to $100,000) and the filing status. Locate a copy of the tax tables on the Internet with the search keywords "2009 1040 tax tables" or from the Forms and Publications link found at the website www.irs.gov. Using $100,000 as a taxable income, find the income tax for a couple (married and filing jointly) in the published tax tables. Record your results. a. Total Income Tax (based on 2009 IRS Tax Tables) = $_ b. Now, calculate the income tax on the very same $100,000 taxable income using the computations described in unit 4-E. Use the framework below to aid in your calculations: Tax Computation Tax Rate 10% 15% 25% Married Filing Jointly up to 16,700 up to 67,900 up to 137,050 Total Income Tax: c. Should your answers for Parts (a) and (b) match exactly? Explain why or why not?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Procedure and Analysis:
1. For taxable incomes of $100,000 or less, the 1040 Forms & Instructions booklet displays tax
tables with the income tax previously calculated for the applicable income level (up to
$100,000) and the filing status. Locate a copy of the tax tables on the Internet with the search
keywords "2009 1040 tax tables" or from the Forms and Publications link found at the
website www.irs.gov. Using $100,000 as a taxable income, find the income tax for a couple
(married and filing jointly) in the published tax tables. Record your results.
a. Total Income Tax (based on 2009 IRS Tax Tables) = $
b. Now, calculate the income tax on the very same $100,000 taxable income using the
computations described in unit 4-E. Use the framework below to aid in your calculations:
Tax Computation
Tax Rate
10%
15%
25%
Married Filing Jointly
up to 16,700
up to 67,900
up to 137,050
Total Income Tax:
c. Should your answers for Parts (a) and (b) match exactly? Explain why or why not?
Transcribed Image Text:Procedure and Analysis: 1. For taxable incomes of $100,000 or less, the 1040 Forms & Instructions booklet displays tax tables with the income tax previously calculated for the applicable income level (up to $100,000) and the filing status. Locate a copy of the tax tables on the Internet with the search keywords "2009 1040 tax tables" or from the Forms and Publications link found at the website www.irs.gov. Using $100,000 as a taxable income, find the income tax for a couple (married and filing jointly) in the published tax tables. Record your results. a. Total Income Tax (based on 2009 IRS Tax Tables) = $ b. Now, calculate the income tax on the very same $100,000 taxable income using the computations described in unit 4-E. Use the framework below to aid in your calculations: Tax Computation Tax Rate 10% 15% 25% Married Filing Jointly up to 16,700 up to 67,900 up to 137,050 Total Income Tax: c. Should your answers for Parts (a) and (b) match exactly? Explain why or why not?
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