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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
$36,100.
Use the given tax table to complete parts (a) through (d).
Tax Rate
|
Single
|
Married Filing Jointly
|
Married Filing Separately
|
Head of Household
|
---|---|---|---|---|
10%
|
up to
$9950
|
up to
$19,900
|
up to
$9950
|
up to
$14,200
|
12%
|
up to
$40,525
|
up to
$81,050
|
up to
$40,525
|
up to
$54,200
|
22%
|
up to
$86,375
|
up to
$172,750
|
up to
$86,375
|
up to
$86,350
|
24%
|
up to
$164,925
|
up to
$329,850
|
up to
$164,925
|
up to
$164,900
|
32%
|
up to
$209,425
|
up to
$418,850
|
up to
$209,425
|
up to
$209,400
|
35%
|
up to
$523,600
|
up to
$628,300
|
up to
$314,150
|
up to
$523,600
|
37%
|
above
$523,600
|
above
$628,300
|
above
$314,150
|
above
$523,600
|
Standard Deduction
|
$12,550
|
$25,100
|
$12,550
|
$18,800
|
Question content area bottom
Part 1
a. Determine the
person's
taxable income. Assume the standard deduction.The taxable income is
$
Compute the tax owed.
The tax owed is
tax bracket.
$
State the
person's
marginal tax rate (tax bracket); then calculate the effective tax rate as a percentage of taxable income.Gene
is in the
▼
32%
22%
35%
37%
10%
24%
12% ( which of these choices)
The effective tax rate based on taxable income is
Calculate the effective tax rate as a percentage of adjusted gross income, and comment on why it differs from what you found in part (c).
The effective tax rate based on adjusted gross income is
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- Use the chart below to answer the question. Married Filing Jointly and Widow(er) Tax Rate Single Married Filing Separately Head of Household 10% $1 - $9075 $1 - $18,150 $1 - $9075 $1 - $12,950 15% $9076 - $36,900 $18,151 - S73,800 $9076 - $36,900 $12,951 - $49,400 259 S36,901 - S89,350 S73,801 - S148,850 $36,901 - $74,425 $49,401 - $127,550 28% S89,351 - $186,350 $148,851 - $226,850 $74,426 - $113,425 $127,551 - $206,600 33% $186,351 - $405,100 S226,851 - $405,100 $113,426 - $202,500 $206,601 - $405,100 35% $405,101 - $406,750 $405, 101 - $457,600 $202,551 - $228,800 $405,101 - S432,200 39.6% over $406,750 over $457,600 over $228,800 over $432,200 Calculate the tax a person who files single would pay if their salary was $62,562. Round to the nearest penny.arrow_forwardDetermine the amount of the child tax credit in each of the following cases: Answer is complete but not entirely correct. Child Tax Credit Allowed a. A single parent with modified AGI of $214,700 and one child age 4. $ 1,250 b. A single parent with modified AGI of $79,300 and three children ages 7, 9, and 12. $ 6,000 × c. A married couple, filing jointly, with modified AGI of $409,233 and two children age 14 and 16. d. A married couple, filing jointly, with modified AGI of $133,355 and one child, age 13. $ 3,538 $ 2,000arrow_forwardUse the marginal tax rates in the table below to compute the tax owed in the following situation. The tax owed is S (Simplify your answer. Round to the nearest dollar as needed.) Marco is married filing separately with a taxable income of $67,900. Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption (per person) Married Filing Separately up to $9325 up to $37,950 up to $76,550 up to $116,675 up to $208,350 up to $235,350 above $235,350 $6350 $4050arrow_forward
- is a head of household, earned wages of $86,500, received $4800 in interest from a savings account, contributed $6700 to a tax-deferred retirement plan, and had itemized deductions totaling $19,950. Find the gross income, adjusted gross income, and taxable income. Tax Rate Single Married Filing Jointly Married Filing Separately Head of Household 10% up to $9950 up to $19,900 up to $9950 up to $14,200 12% up to $40,525 up to $81,050 up to $40,525 up to $54,200 22% up to $86,375 up to $172,750 up to $86,375 up to $86,350 24% up to $164,925 up to $329,850 up to $164,925 up to $164,900 32% up to $209,425 up to $418,850 up to $209,425 up to $209,400 35% up to $523,600 up to $628,300 up to $314,150 up to $523,600 37% above $523,600 above $628,300 above $314,150 above $523,600 Standard Deduction…arrow_forward6. A married couple are calculating their federal income tax using the tax rate tables: Then Estimated Taxes Are If Taxpayer's Income Is Between So $16,700 $67,900 $137,050 $208,850 $372,950 But Not Over $16,700 $67,900 $137,050 $208,850 $372,950 Base TaxRate $0 10% $1,670.00 15% $9,350.00 25% $26,637.50 28% $46,741.50 33% $100,894.50 35% S0 $16,700 $67,900 $137,050 $208,850 $372,950 How much tax will they have to pay on their taxable income of $202,000? (4arrow_forwardUse the chart below to answer the question: Married Filing Jointly and Widow(er) Tax Rate Single Married Filing Separately Head of Household 10% $1 - $9075 $1 - $18,150 $1 - $9075 $1 - $12,950 15% S9076 - $36,900 $18,151 - $73,800 $9076 - $36.900 $12,951 - $49,400 25% $36,901 - $89,350 S73,801 - $148.850 $36,901 - $74,425 $49,401 - $127,550 28% S89,351 - $186,350 $148,851 - $226.850 $74,426 - $113,425 $127,551 - $206,600 33% $186,351 - $405,100 $226,851 - $405,100 $113,426 - $202,500 $206,601 - $405,100 35% $405,101 - $406,750 $405,101 - $457,600 $202,551 - $228,800 $405,101 - $432,200 39.6% over $406,750 over $457,600 over $228,800 over $432,200 Calculate the tax a person who files head of household would pay if their salary was $321,854. Round to the nearest penny.arrow_forward
- Determine the amount of the child tax credit in each of the following cases: Answer is complete but not entirely correct. a. A single parent with modified AGI of $214,200 and one child age 4. b. A single parent with modified AGI of $78,800 and three children ages 7, 9, and 12. c. A married couple, filing jointly, with modified AGI of $408.733 and two children age 14 and 16. d. A married couple, filing jointly, with modified AGI of $132,855 and one child, age 13. Child Tax Credit Allowed $ $ $ 19 $ 1,900 x 9,000 x 6,000 x 3,000arrow_forwardExample 4-2 To compute the tax using the percentage method, follow the steps illustrated below. Step 1 Determine the amount of gross wages earned, marital status, number of allowances, and frequency of pay. Note: If the wage ends in a fractional dollar amount, the wage may be rounded to the nearest dollar. However, in this text, exact wages are used. ➡ Wilson Goodman, single, claims two allowances and earns $915.60 semimonthly. Step 2 Multiply the number of allowances claimed by the amount of one allowance for the appropriate payroll period, as shown in the Table of Allowance Values in Figure 4.6. ➡ Table of Allowance Values for semimonthly payroll period shows $175.00. Multiply $175.00 × 2 = $350.00 Step 3 Subtract the amount for the number of allowances claimed from the employee’s gross pay to find the excess of wages over allowances claimed. ➡ Gross pay $915.60 Less: Allowances 350.00 Excess wages $565.60 Step 4…arrow_forwardThe Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.8) Alicia, age 27, is a single, full-time college student. She earns $13,200 from a part-time job and has taxable interest income of $1,450. Her itemized deductions are $845. Table for the standard deduction Filing Status Standard Deduction Single $12,400 Married, filing jointly 24,800 Married, filing separately 12,400 Head of household 18,650 Qualifying widow(er) 24,800 Calculate Alicia's taxable income for 2020. $fill in the blank 1arrow_forward
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