Use the 2016 marginal tax rates to compute the income tax owed by the following person. Single male, no dependents. Gross income:$87,000 Adjustments: $4000 Deductions:$31,000 mortgage interest $4664 property taxes $4000 charitable contributions Tax credit:none Click the icon to view the 2016 marginal tax rates. The income tax owed is $ (Type an integer or a decimal. Round to the nearest cent as needed.)

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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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.
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 $
Transcribed Image Text:## 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.

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