Sam, a single individual, has $75,000 salary and $25,000 qualified dividends. Sam incurred $2,000 investment interest expense and her itemized deductions other than her investment interest expense are $15,000. Assume Sam elects to treat enough of the qualified dividends as investment income to deduct all of her investment interest expense. Compute Sam's total tax liability including both her income tax and net investment income tax, if applicable, for the current year. Group of answer choices $12,267 $12,399 $13,141
Sam, a single individual, has $75,000 salary and $25,000 qualified dividends. Sam incurred $2,000 investment interest expense and her itemized deductions other than her investment interest expense are $15,000. Assume Sam elects to treat enough of the qualified dividends as investment income to deduct all of her investment interest expense. Compute Sam's total tax liability including both her income tax and net investment income tax, if applicable, for the current year. Group of answer choices $12,267 $12,399 $13,141
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 26CE
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Question
P 10
![Sam, a single individual, has $75,000 salary and $25,000 qualified dividends. Sam incurred $2,000 investment interest
expense and her itemized deductions other than her investment interest expense are $15,000. Assume Sam elects to treat
enough of the qualified dividends as investment income to deduct all of her investment interest expense. Compute Sam's
total tax liability including both her income tax and net investment income tax, if applicable, for the current year.
Group of answer choices
$12,267
$12,399
$13,141
$13,877](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa73ae55a-26b6-4048-8111-ba5b495985cc%2F7314ee69-59a9-4e7d-b7b9-511326a2b344%2F2xonmvd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sam, a single individual, has $75,000 salary and $25,000 qualified dividends. Sam incurred $2,000 investment interest
expense and her itemized deductions other than her investment interest expense are $15,000. Assume Sam elects to treat
enough of the qualified dividends as investment income to deduct all of her investment interest expense. Compute Sam's
total tax liability including both her income tax and net investment income tax, if applicable, for the current year.
Group of answer choices
$12,267
$12,399
$13,141
$13,877
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