The Chungs are married with one dependent child. They report the following information for 2022:Schedule C net profit$ 66,650Interest income from certificate of deposit (CD)2,100Self-employment tax on Schedule C net profit9,418Dividend eligible for 15% rate12,000Lila Chung's salary from Brants Company75,000Dependent care credit500Itemized deductions27,000Required:Compute AGI,taxable income,and total tax liability (including self-employment tax). Assume that Schedule C net profit is qualified business income (non-service income) under Section 199A. Assume the taxable year is 2022. Use Individual Tax Rate Schedules and Standard Deduction Table.Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount.

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Answered: The Chungs are married with one…

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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Schedule C net profit	$ 66,650
Interest income from certificate of deposit (CD)	2,100
Self-employment tax on Schedule C net profit	9,418
Dividend eligible for 15% rate	12,000
Lila Chung's salary from Brants Company	75,000
Dependent care credit	500
Itemized deductions	27,000

Required:

Compute AGI,

taxable income,

and total tax liability (including self-employment tax). Assume that Schedule C net profit is qualified business income (non-service income) under Section 199A. Assume the taxable year is 2022. Use Individual Tax Rate Schedules and Standard Deduction Table.

Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount.

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