What is the total tax due?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:15. From the following information determine
the total 2020 tax due for Gracelyn and Jason
Baxter, assuming they file a joint return, have
three dependents all under the age of 8, and
are not members of a qualified retirement
plan:
Jason's Wages $ 76,000
Gracelyn's Wages $ 42,000
Jason's IRA Contribution $ 3,000
Gracelyn's IRA Contribution $ 3,000
Gracelyn's Self Employment Income from Etsy
$ 77,000
Tax Preference Items $ 50,000
General Business Credit $ 6,000
Primary Residence Mortgage Interest $
18,000
Property Taxes $ 12,000
What is the total tax due?
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