To calculate the income tax due for the individual described, apply the 2016 marginal tax rates as follows:**Profile:**- **Status:** Single male, no dependents.**Financial Details:**- **Gross Income:** $87,000- **Adjustments:** $4,000- **Deductions:** - Mortgage Interest: $31,000 - Property Taxes: $4,664 - Charitable Contributions: $4,000**Tax Credits:** None**Instructions:**- Click on the icon to access the 2016 marginal tax rates.**Calculation Box:**- Enter the calculated income tax owed in the space provided.- Ensure to type the amount as either an integer or a decimal, rounding to the nearest cent if necessary. ## 2016 Marginal Tax Rates### 2016 Marginal Tax Rates, Standard Deductions, and ExemptionsThis table provides an overview of the 2016 marginal tax rates applicable to various filing statuses. It outlines income brackets and the corresponding tax rates for single individuals, those married filing separately, those married filing jointly, and heads of household.#### Tax Rate Details:- **Single** - **10%**: Up to $9,275 - **15%**: $9,276 to $37,650 - **25%**: $37,651 to $91,150 - **28%**: $91,151 to $190,150 - **33%**: $190,151 to $413,350 - **35%**: $413,351 to $415,050 - **39.6%**: More than $415,050 - **Standard Deduction**: $6,300- **Married Filing Separately** - **10%**: Up to $9,275 - **15%**: $9,276 to $37,650 - **25%**: $37,651 to $75,950 - **28%**: $75,951 to $115,725 - **33%**: $115,726 to $206,675 - **35%**: $206,676 to $233,475 - **39.6%**: More than $233,475 - **Standard Deduction**: $6,300- **Married Filing Jointly** - **10%**: Up to $18,550 - **15%**: $18,551 to $75,300 - **25%**: $75,301 to $151,900 - **28%**: $151,901 to $231,450 - **33%**: $231,451 to $413,350 - **35%**: $413,351 to $466,950 - **39.6%**: More than $466,950 - **Standard Deduction**: $12,600- **Head of Household** - **10%**: Up to $

Answered: Use the 2016 marginal tax rates to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Transcribed Image Text:To calculate the income tax due for the individual described, apply the 2016 marginal tax rates as follows: **Profile:** - **Status:** Single male, no dependents. **Financial Details:** - **Gross Income:** $87,000 - **Adjustments:** $4,000 - **Deductions:** - Mortgage Interest: $31,000 - Property Taxes: $4,664 - Charitable Contributions: $4,000 **Tax Credits:** None **Instructions:** - Click on the icon to access the 2016 marginal tax rates. **Calculation Box:** - Enter the calculated income tax owed in the space provided. - Ensure to type the amount as either an integer or a decimal, rounding to the nearest cent if necessary.

## 2016 Marginal Tax Rates

### 2016 Marginal Tax Rates, Standard Deductions, and Exemptions

This table provides an overview of the 2016 marginal tax rates applicable to various filing statuses. It outlines income brackets and the corresponding tax rates for single individuals, those married filing separately, those married filing jointly, and heads of household.

#### Tax Rate Details:

- **Single**
- **10%**: Up to $9,275
- **15%**: $9,276 to $37,650
- **25%**: $37,651 to $91,150
- **28%**: $91,151 to $190,150
- **33%**: $190,151 to $413,350
- **35%**: $413,351 to $415,050
- **39.6%**: More than $415,050
- **Standard Deduction**: $6,300

- **Married Filing Separately**
- **10%**: Up to $9,275
- **15%**: $9,276 to $37,650
- **25%**: $37,651 to $75,950
- **28%**: $75,951 to $115,725
- **33%**: $115,726 to $206,675
- **35%**: $206,676 to $233,475
- **39.6%**: More than $233,475
- **Standard Deduction**: $6,300

- **Married Filing Jointly**
- **10%**: Up to $18,550
- **15%**: $18,551 to $75,300
- **25%**: $75,301 to $151,900
- **28%**: $151,901 to $231,450
- **33%**: $231,451 to $413,350
- **35%**: $413,351 to $466,950
- **39.6%**: More than $466,950
- **Standard Deduction**: $12,600

- **Head of Household**
- **10%**: Up to $

Expert Solution

Step 1 Introduction

The entire amount of taxes that are owed to federal, state, and local governments by people and companies for a certain time period is referred to as their tax obligation. Tax obligations are considered to be short-term liabilities for firms since they are documented on a balance sheet and must be paid off within one year.