The tax return of person MH for the year 2015. A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Dr Z. Mthembu is the owner of Mr Granite, a business in the Western Cape. After more than 28 years of operation, the business is thinking about taking on a new project that would provide a profitable new clientele. With only R1.5 million in resources, the company is now working on two competing projects. The starting costs for Project X and Project Y are R625,000 and R600000, respectively. These projected are estimated for the next 7 years timeframe. According to SARS, the tax rate is 28%, and a discount rate of 11.25% is applied.Projects X Project YProject X Project Y129000 145000154000 145000312000 145000168000 14500098250 14500088750 14500016050 145000

An investor buys 100 shares of a $40 stock that pays an annual cash dividend of $2 a share (a 5 percent dividend yield) and signs up for the DRIP. a. If neither the dividend nor the price changes, how many shares will the investor have at the end of 10 years? How much will the position in the stock be worth? Answer: 5.000 shares purchased in year 1 5.250 shares purchased in year 2 6.078 shares purchased in year 5 62.889 total shares purchased b. If the price of the stock rises by 6 percent annually but the dividend remains at $2 a share, how many shares are purchased each year for the next 10 years? How much is the total position worth at the end of 10 years? Answer: 4.717 shares purchased in year 1 4.592 shares in year 3 3.898 shares in year 10 Value of position: $10,280 c. If the price of the stock rises by 6 percent annually but the dividend rises by only 3 percent annually, how many shares are purchased each year for the next 10 years? How much is the total position worth at the…

Answer 2

Question

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

Answer 6

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

Answer 7

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

Answer 8

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

Answer 13

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

Answer 14

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50