Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table 3.5. Assume that their taxable income this year was$320,000. Do not round Intermediate calculation.a. What is their federal tax liability? Round your answer to the nearest dollar.$b. What is their marginal tax rate? Round your answer to the nearest whole number.%c. What is their average tax rate? Round your answer to two decimal places.% Single IndividualsIf Your TaxableIncome IsUp to $9,875$9,875-$40,125$40,125-$85,525$85,525-$163,300$163,300-$207,350$207,350-$518,400Over $518,400Married Couples Filing Joint ReturnsIf Your TaxableIncome IsYou Pay ThisAmount on theBase of the Bracket$Up to $19,750$19,750-$80,250$80,250-$171,050$171,050-$326,600$326,600-$414,700$414,700-$622,050Over $622,0500.00987.504,617.5014,605.5033,271.5047,367.50156,235.00You Pay ThisAmount on theBase of the Bracket$0.001,975.009,235.0029,211.0066,543.0094,735.00167,307.50Plus This Percentageon the Excess overthe Base (Marginal Rate)10.0%12.022.024.032.035.037.02020 Individual Tax RatesPlus This Percentageon the Excess over theBase (Marginal Rate)10.0%12.022.024.032.035.037.0Average TaxRate at Topof Bracket10.0%11.517.120.422.830.137.0Average TaxRate atTop of Bracket10.0%11.517.120.422.826.937.0Notes:1. These are the 2020 tax rates that will be paid on tax returns due April 15, 2021. The income ranges atwhich each tax rate takes effect are indexed with inflation, so they change each year.2. The average tax rates are always below the marginal rates, but in 2020 the average at the top of thebrackets approaches 37% as taxable income rises without limit.3. In 2018, the personal exemption for the taxpayer and dependents was eliminated. With the deductionlimitation on state and local property, income, and sales taxes and the existence of payroll taxes (SocialSecurity and Medicare taxes), the 2020 effective tax rate will be higher than 37%.

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Answered: Susan and Stan Britton are a married…

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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Use the marginal tax rates in the table below to compute the tax owed in the following situation. The tax owed is S (Simplify your answer. Round to the nearest dollar as needed.) Marco is married filing separately with a taxable income of $67,900. Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption (per person) Married Filing Separately up to $9325 up to $37,950 up to $76,550 up to $116,675 up to $208,350 up to $235,350 above $235,350 $6350 $4050
Vinubhai
Accrual Criterion and Progressivity. Let's consider William, which Salary is 200. Three years ago he bought some shares for 50. This year he sold them for 350. Find the Taxable Income, and tax payable in each case that result from to apply the different techniques to resolve problems of accruel criterion and progressivity in Personal income tax. Compare three cases: doing nothing special, annualized income system (letter b), and Spanish Solution with a proportional tax rate of 19% for capital gains and rest of income at general tax rate scale (letter c) • What things would change if we are talking of an irregular income from business, instead of being a capital gain? • What things would change if the number of years between the buying and the selling of shares was 5, instead of 3?
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.
6. A married couple are calculating their federal income tax using the tax rate tables: Then Estimated Taxes Are If Taxpayer's Income Is Between So $16,700 $67,900 $137,050 $208,850 $372,950 But Not Over $16,700 $67,900 $137,050 $208,850 $372,950 Base TaxRate $0 10% $1,670.00 15% $9,350.00 25% $26,637.50 28% $46,741.50 33% $100,894.50 35% S0 $16,700 $67,900 $137,050 $208,850 $372,950 How much tax will they have to pay on their taxable income of $202,000? (4
Answer questions 3 and 4 correctly please. Calculate FICA Taxes Note: all calculations both intermediate and final should be rounded to two decimal places at each calculation.
Determine the amount of the child tax credit in each of the following cases: Answer is complete but not entirely correct. a. A single parent with modified AGI of $214,200 and one child age 4. b. A single parent with modified AGI of $78,800 and three children ages 7, 9, and 12. c. A married couple, filing jointly, with modified AGI of $408.733 and two children age 14 and 16. d. A married couple, filing jointly, with modified AGI of $132,855 and one child, age 13. Child Tax Credit Allowed $ $ $ 19 $ 1,900 x 9,000 x 6,000 x 3,000
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Liam has a gross income of $120,000 and takes the standard deduction. 1) What are his total taxes due? 2) What is his marginal tax rate? 3) What is his effective tax rate? Round to the neared hundredth of a percent.
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Suppose Alexa has a weekly paycheck with gross earnings of $1,234.00 and is single with no dependents. Calculate her Federal Withholding Tax for the pay period using the percentage method.
I need your help with the question attached.

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