Rates for a married taxpayer filing separately are 10% of taxable income up to $8, 375 and 15% thereafter up to $34,000. Rates for a couple filing a joint return are 10% of taxable income up to $16, 750 and 15% thereafter up to $68,000. Patrick and Kelly O'Day are figuring their tax both ways for comparison before deciding which way to file. Patrick earned $15,000 and Kelly earned $35,000. The standard deduction for a married couple filing jointly is $12,200. The standard deduction for each married taxpayer filing separately is $6,100. Exemption for each taxpayer is $3,900. a. Compute the amount of tax the O'Days will owe if they file a joint return. b. Compute the amount of tax the O'Days will owe if they file two separate returns. (For your answer, add the individual returns together.)

Rates for a married taxpayer filing separately are 10% of taxable income up to $8, 375 and 15% thereafter up to $34,000. Rates for a couple filing a joint return are 10% of taxable income up to $16, 750 and 15% thereafter up to $68,000. Patrick and Kelly O'Day are figuring their tax both ways for comparison before deciding which way to file. Patrick earned $15,000 and Kelly earned $35,000. The standard deduction for a married couple filing jointly is $12,200. The standard deduction for each married taxpayer filing separately is $6,100. Exemption for each taxpayer is $3,900. a. Compute the amount of tax the O'Days will owe if they file a joint return. b. Compute the amount of tax the O'Days will owe if they file two separate returns. (For your answer, add the individual returns together.)

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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