Ross Martin arrived at the following tax information: Gross salary, $56,145 Interest earnings, $205` Dividend income, $65 Standard deduction, $12,000 Itemized deductions, $11,250 Adjustments to income, $1,200 What amount would Ross report as taxable income?       If Lola Harper had the following itemized deductions, should she use Schedule A or the standard deduction? The standard deduction for her tax situation is $12,000. Donations to church and other charities, $6,050 Medical and dental expenses that exceed 10 percent of adjusted gross income, $2,400 State income tax, $4,690   What would be the average tax rate for a person who paid taxes of $4,584 on a taxable income of $41,670?

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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  1. Ross Martin arrived at the following tax information:

Gross salary, $56,145

Interest earnings, $205`

Dividend income, $65

Standard deduction, $12,000

Itemized deductions, $11,250

Adjustments to income, $1,200

What amount would Ross report as taxable income?

 

 

 

  1. If Lola Harper had the following itemized deductions, should she use Schedule A or the standard deduction? The standard deduction for her tax situation is $12,000.

Donations to church and other charities, $6,050

Medical and dental expenses that exceed 10 percent of adjusted gross income, $2,400

State income tax, $4,690

 

  1. What would be the average tax rate for a person who paid taxes of $4,584 on a taxable income of $41,670?

 

  1. Using Federal Tax Rate Schedules. Using the tax rate schedule in Exhibit 4-6, determine the amount of taxes for the following taxable income amounts:

a.     Married Filing Jointly: Taxable income $50,000.

b.     Married Filing Jointly: Taxable income $70,000.

c.     Married Filing Jointly: Taxable income $95,000.

 

5. Explain the difference between a short-term capital gain and a long-term capital gain.

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