Assume that the annuity in part (a) is a tax-deferred IRA belonging to a man whose gross income is$45,000.Use the table on the left to calculate his taxes first with and then without the IRA. Assume the man is single with no dependents, has no tax credits, and takes the standard deduction. You would like to have $900,000 in 37 years by makingregular deposits at the end of each month in an annuitythat pays 7% compounded monthly. The table belowshows the 2021 marginal tax rates, standard deduction,and exemptions for a single person. Complete parts (a)through (c).Tax Rate10%12%22%24%32%35%37%SingleStandard Deductionup to $9950$9951 to $40,525$40,526 to $86,375$86,376 to $164,925$164,926 to $209,425$209,426 to $523,600more than $523,600$12,550i Click the icon to view some finance formulas.(***)a. Determine the deposit at the end of eachmonth.In order to have $900,000 in 37 years, you shoulddeposit $ 430 each month.(Round up to the nearest dollar.)b. Assume that the annuity in part (a) isa tax-deferred IRA belonging to a man whosegross income is $45,000. Use the table on the leftto calculate his taxes first with and then withoutthe IRA. Assume the man is single withno dependents, has no tax credits, and takes thestandard deduction.The income tax with the IRA is $(Use the answer from part (a) to find this answer.Round up to the nearest cent as needed.)The income tax without the IRA is $1.(Use the answer from part (a) to find this answer.Round up to the nearest cent as needed.)

Gross income: Gross income is the sum of all forms of income of the taxpayer before claiming any…

You would like to have $900,000 in 37 years by making regular deposits at the end of each month in an annuity that pays 7% compounded monthly. The table below shows the 2021 marginal tax rates, standard deduction, and exemptions for a single person. Complete parts (a) through (c).

You would like to have $900,000 in 37 years by making regular deposits at the end of each month in an annuity that pays 7% compounded monthly. The table below shows the 2021 marginal tax rates, standard deduction, and exemptions for a single person. Complete parts (a) through (c).

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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