Song earns $150,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i.e., $30,000 of tax). Answer the questions below assuming that Congress increases the income tax rate such that Song's average tax rate increases from 20 percent to 25 percent. Required: a. What will happen to the government's tax revenues if Song chooses to spend more time pursuing her other passions besides work in response to the tax rate change and therefore earns only $112,500 in taxable income? b. What is the term that describes this type of reaction to a tax rate increase? c. What types of taxpayers are likely to respond in this manner? Complete this question by entering your answers in the tabs below. Required A Required B Required C What types of taxpayers are likely to respond in this manner? Type of taxpayers Taxpayers with less disposable income Taxpayers with more disposable income dc

Song earns $150,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i.e., $30,000 of tax). Answer the questions below assuming that Congress increases the income tax rate such that Song's average tax rate increases from 20 percent to 25 percent. Required: a. What will happen to the government's tax revenues if Song chooses to spend more time pursuing her other passions besides work in response to the tax rate change and therefore earns only $112,500 in taxable income? b. What is the term that describes this type of reaction to a tax rate increase? c. What types of taxpayers are likely to respond in this manner? Complete this question by entering your answers in the tabs below. Required A Required B Required C What types of taxpayers are likely to respond in this manner? Type of taxpayers Taxpayers with less disposable income Taxpayers with more disposable income dc

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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Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. During 2021, Cassandra Albright, who is single, worked part-time at a doctor's office and received a W-2. She also had a cash- basis consulting practice that had the following income and expenses: Revenue Laptop computer purchased 4/23/21 (§ 179 elected) Travel: 2,500 miles for business, 13,000 personal Supplies Cell phone charge $ 53,000 3,300 500 960 Cassandra (SSN 412-34-5670) resides at 1400 Medical Street, Apartment 3A, Lowland, CA 92273. Her W-2 shows the following: Wages Federal withholding Social security wages Social security withholding Medicare withholding State withholding Other income: $ 49,000 5,200 49,000 3,038 711 2,265 1099-INT Old Bank 2,200 1099-DIV Bake Company, Incorporated-Ordinary dividends…
The Wilmoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. Given their projected taxable income, the Wilmoths are in the 24% Federal income tax bracket and the 8% state income tax bracket (i.e., an aggregate marginal tax bracket of 32%). Assume that the Wilmoths will benefit from itemizing their deductions for both Federal and state purposes. The total cash outlay during the first year of ownership will be $23,400 ($1,200 principal payments, $22,200 qualified residence interest payments). If required, round your interim calculation to nearest dollar. As a result, the initial year after-tax cost of financing the purchase of the home will be $fill in the blank 1
n each of the following cases, discuss how the taxpayers might respond to a tax rate increase in a manner consistent with the income effect. a. Mr. Edwards earns $32,000 a year as an employee, and Mrs. Edwards doesn’t work.b. Mr. Frank earns $22,000 a year as an employee, and Mrs. Frank earns $10,000 a year as a self-employed worker.c. Mr. George earns $22,000 a year as an employee, and Mrs. George earns $10,000 a year as an employee.
Rosa is in the 35% tax bracket and itemizes her deductions. How much will her tax bill be reduced if she makes a $800 contribution to charity? Her tax bill will be reduced by $enter your response here. (Simplify your answer.)
Sam Club earned $50,000 and paid taxes of $10,000. Samantha Heartearned $60,000 and paid taxes of $12,000. If these taxes were paid to thesame government agency, is the tax on income progressive, regressive, orproportional? How did you reach this conclusion?
"Mr. and Mrs. Jerald own a dry cleaning business that generates $125,000 taxable income each year. For the past few years, the couple’s federal tax rate on this income has been 32 percent. Congress recently increased the tax rate for next year to 40 percent. Based on a static forecast, how much additional revenue will the federal government collect from Mr. and Mrs. Jerald next year? How much additional revenue will the government collect if Mr. and Mrs. Jerald respond to the rate increase by working harder and earning $140,000 next year? How much additional revenue will the government collect if Mr. and Mrs. Jerald respond to the rate increase by working less and earning only $110,000 next year? "
1. PLEASE SHOW ALL WORK SO I CAN FOLLOW ALONG! THANK YOU SO MUCH! 56,000 IS NOT THE ANSWER. I REPEAT 56,000 IS NOT THE ANSWER. I HAVE SEEN THIS ANSWER BEFORE. PLEASE DO NOT GIVE ME 56,000 BECAUSE IT IS NOT CORRECT.
In 2022, a taxpayer (with $26,500 of employee compensation) was allocated $176,000 of self-employment income. Calculate the amount of self-employment tax the taxpayer would owe. I know that the answer is $18,877 but I don't understand how they got it,
Pear, an individual, plans to start a small business, which will operate as a corporation. In year 0, she expects the corporation to generate an ordinary loss of $950,000. Subsequently, she expects the corporation to be profitable, and projects ordinary profit of $1.425,000 in year 1, and $2,375.000 in year 2. Pear's personal marginal tax rate on ordinary income is 37%. Assuming a corporate tax rate of 21% and a 10% discount rate, calculate the present value of expected tax costs on the business earnings for the first 3 years of operations if the business does not make an S corporation election Assume the excess business loss limitation does not apply. Round your discount rate calculations to three decimal places. O sas3,623 O $896,325 O $1.128,600 O $502.640
I need help doing this exercise! If some can help me resolve this, I would really be really apreciated!
One of the initiatives of the Federal government in recent years was to increase the taxation paid by high income earners, while at the same time, not instituting any “tax hikes”. One way this was accomplished was to reduce the basic personal tax credit for individuals with income greater than $151,978 up to an income level of $216,511. In the following situation, you the taxpayer have an income level of $200,709. calculate and present your reduced non-refundable personal tax credit amount below.
Required information Skip to question [The following information applies to the questions displayed below.] Emily, who is single, has been offered a position as a city landscape consultant. The position pays $143,000 in cash wages. Assume Emily has no dependents. Emily deducts the standard deduction instead of itemized deductions, she is not eligible for the qualified business income deduction, and she did not make any charitable donations. (Use the tax rate schedules.) a. What is the amount of Emily’s after-tax compensation (ignore payroll taxes)? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) 2021 Tax Rate Schedules IndividualsSchedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9,950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40,525 $ 86,375 $ 164,925 $14,751 plus 24% of the excess…