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Business Accounting McGraw-Hill's Taxation of Individuals and Business Entities 2020 Edition

a. Introduction: The Internal Revenue Service (IRS), which is responsible for collecting taxes, levies a federal income tax on the annual income of corporations, trusts, and individuals. The annual income includes commission, bonus, tips, wages, and salaries. To Compute: The income tax liability of Ms. W for the year 2019 while filing under single status. The income tax liability of Ms. W while filling under single status is $12,358.16. Computation of Income-tax liability while filling under single status is as below: Income for Year 2019 = $75,000 Income tax bracket for year 2019 is as follows: $0-$9,700 = 10% $9,701-$39,475 = 12% $39,476 - $84,200 =22% Income Tax=($9700 × 10%)+($29,774 × 12%)+($35,524 × 22%) =$970+$3,572 .88+$7,815 .28 =$12,358 .16 b. Introduction: The Internal Revenue Service (IRS), which is responsible for collecting taxes, levies a federal income tax on the annual income of corporations, trusts, and individuals. The annual income includes commission, bonus, tips, wages, and salaries. To Compute: The income tax liability of Ms. W while filing jointly with spouse for the year 2019. The income tax liability of Ms. W while filing jointly with spouse is $8,611.88. Computation of Income-tax liability while filing jointly with the spouse is as below: Income for Year 2019 = $75,000 Income tax bracket for the year 2019 is as follows: $0-$19,400=10% $19,401-$78,950=12% Income Tax=($19400 × 10%)+[($19,401-$75,000) × 12%] =$1,940+$6,671 .88 =$8,611 .88 c. Introduction: The Internal Revenue Service (IRS), which is responsible for collecting taxes, levies a federal income tax on the annual income of corporations, trusts, and individuals. The annual income includes commission, bonus, tips, wages, and salaries. To Compute: The income tax liability of Ms. W for the year 2019 while filing separately. The income tax liability of Ms. W while filling separately is $12,358.16 Computation of Income-tax liability while filing separately is as below: Income for Year 2019 = $75,000 Income tax bracket for year 2019 is as follows: $0-$9,700 = 10% $9,701-$39,475 = 12% $39,476 - $84,200 =22% Income Tax=($9700 × 10%)+($29,774 × 12%)+($35,524 × 22%) =$970+$3,572 .88+$7,815 .28 =$12 .358 .16 d. Introduction: The Internal Revenue Service (IRS), which is responsible for collecting taxes, levies a federal income tax on the annual income of corporations, trusts, and individuals. The annual income includes commission, bonus, tips, wages, and salaries. To Compute: The income tax liability of Ms. W for the year 2019 while filing as head of household. The income tax liability of Ms. W while filing as head of household is $10,937.66 Computation of Income-tax liability while filing as head of household is as below: Income for Year 2019 = $75,000 Income tax bracket for year 2019 is as follows: $0-$13,850= 10% $13,851-$52,850=12% $52,851-$84,200=22% Income Tax=[($13,850 × 10%)]+[($13,851-$52,850) × 12%]+[$52,851-$75,000) × 22%] =$1,385+$4,679 .88+$4,872 .78 =$10,937 .66

a. Introduction: The Internal Revenue Service (IRS), which is responsible for collecting taxes, levies a federal income tax on the annual income of corporations, trusts, and individuals. The annual income includes commission, bonus, tips, wages, and salaries. To Compute: The income tax liability of Ms. W for the year 2019 while filing under single status. The income tax liability of Ms. W while filling under single status is $12,358.16. Computation of Income-tax liability while filling under single status is as below: Income for Year 2019 = $75,000 Income tax bracket for year 2019 is as follows: $0-$9,700 = 10% $9,701-$39,475 = 12% $39,476 - $84,200 =22% Income Tax=($9700 × 10%)+($29,774 × 12%)+($35,524 × 22%) =$970+$3,572 .88+$7,815 .28 =$12,358 .16 b. Introduction: The Internal Revenue Service (IRS), which is responsible for collecting taxes, levies a federal income tax on the annual income of corporations, trusts, and individuals. The annual income includes commission, bonus, tips, wages, and salaries. To Compute: The income tax liability of Ms. W while filing jointly with spouse for the year 2019. The income tax liability of Ms. W while filing jointly with spouse is $8,611.88. Computation of Income-tax liability while filing jointly with the spouse is as below: Income for Year 2019 = $75,000 Income tax bracket for the year 2019 is as follows: $0-$19,400=10% $19,401-$78,950=12% Income Tax=($19400 × 10%)+[($19,401-$75,000) × 12%] =$1,940+$6,671 .88 =$8,611 .88 c. Introduction: The Internal Revenue Service (IRS), which is responsible for collecting taxes, levies a federal income tax on the annual income of corporations, trusts, and individuals. The annual income includes commission, bonus, tips, wages, and salaries. To Compute: The income tax liability of Ms. W for the year 2019 while filing separately. The income tax liability of Ms. W while filling separately is $12,358.16 Computation of Income-tax liability while filing separately is as below: Income for Year 2019 = $75,000 Income tax bracket for year 2019 is as follows: $0-$9,700 = 10% $9,701-$39,475 = 12% $39,476 - $84,200 =22% Income Tax=($9700 × 10%)+($29,774 × 12%)+($35,524 × 22%) =$970+$3,572 .88+$7,815 .28 =$12 .358 .16 d. Introduction: The Internal Revenue Service (IRS), which is responsible for collecting taxes, levies a federal income tax on the annual income of corporations, trusts, and individuals. The annual income includes commission, bonus, tips, wages, and salaries. To Compute: The income tax liability of Ms. W for the year 2019 while filing as head of household. The income tax liability of Ms. W while filing as head of household is $10,937.66 Computation of Income-tax liability while filing as head of household is as below: Income for Year 2019 = $75,000 Income tax bracket for year 2019 is as follows: $0-$13,850= 10% $13,851-$52,850=12% $52,851-$84,200=22% Income Tax=[($13,850 × 10%)]+[($13,851-$52,850) × 12%]+[$52,851-$75,000) × 22%] =$1,385+$4,679 .88+$4,872 .78 =$10,937 .66

Solution Summary: The author explains that the Internal Revenue Service levies a federal income tax on the annual income of corporations, trusts, and individuals.

McGraw-Hill's Taxation of Individuals and Business Entities 2020 Edition

McGraw-Hill's Taxation of Individuals and Business Entities 2020 Edition

11th Edition

ISBN: 9781260432466

Author: SPILKER, Brian

Publisher: MCGRAW-HILL HIGHER EDUCATION

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McGraw-Hill's Taxation of Individuals and Business Entities 2020 Edition

Ch. 8 - What is a tax bracket? What is the relationship...Ch. 8 - Prob. 47P Ch. 8 - Prob. 63P

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