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Range of Benefits Bob, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $1,089.50. Assume that the benefit is the same for this year and the next year. Compute Bob's annual benefit reduction amounts in each of the following scenarios. • If Bob retires this year and secures a part-time job earning $18,000, his annual benefit reduction amount is S • If Bob retires this year, secures the same part-time job, and in addition projects interest and dividend earnings of $7,000 per year, what his annual benefit reduction amount is S • If Bob retires next year and secures the same part-time job, the annual benefit reduction amount is $

Range of Benefits Bob, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $1,089.50. Assume that the benefit is the same for this year and the next year. Compute Bob's annual benefit reduction amounts in each of the following scenarios. • If Bob retires this year and secures a part-time job earning $18,000, his annual benefit reduction amount is S • If Bob retires this year, secures the same part-time job, and in addition projects interest and dividend earnings of $7,000 per year, what his annual benefit reduction amount is S • If Bob retires next year and secures the same part-time job, the annual benefit reduction amount is $

FINANCIAL ACCOUNTING
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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Range of Benefits Bob, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $1,089.50. Assume that the benefit is the same for this year and the next year. Compute Bob's annual benefit reduction amounts in each of the following scenarios. • If Bob retires this year and secures a part-time job earning $18,000, his annual benefit reduction amount is $ • If Bob retires this year, secures the same part-time job, and in addition projects interest and dividend earnings of $7,000 per year, what his annual benefit reduction amount is $ • If Bob retires next year and secures the same part-time job, the annual benefit reduction amount is S Taxes on Benefits Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayer's base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero. Suppose Eric is retiring this year at age 67. The following table shows his data. Part-time salary $31,500 Annual savings account interest $275 Annual dividends $2,500 Annual interest on Denver municipal bonds $1,350 Based on the income calculated, Eric will have % of his Social Security benefits taxed.
Transcribed Image Text:Range of Benefits Bob, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $1,089.50. Assume that the benefit is the same for this year and the next year. Compute Bob's annual benefit reduction amounts in each of the following scenarios. • If Bob retires this year and secures a part-time job earning $18,000, his annual benefit reduction amount is $ • If Bob retires this year, secures the same part-time job, and in addition projects interest and dividend earnings of $7,000 per year, what his annual benefit reduction amount is $ • If Bob retires next year and secures the same part-time job, the annual benefit reduction amount is S Taxes on Benefits Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayer's base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero. Suppose Eric is retiring this year at age 67. The following table shows his data. Part-time salary $31,500 Annual savings account interest $275 Annual dividends $2,500 Annual interest on Denver municipal bonds $1,350 Based on the income calculated, Eric will have % of his Social Security benefits taxed.
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