FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Question
Problem 14-65 (b) (LO. 5)
For 2020, Lanzo has properly determined that his taxable income is $22,500, including
$4,000 of unrecaptured § 1250 gain and $2,300 of 0%/15%/20% gain. Lanzo files married
filing separately. Compute Lanzo's tax liability and tax savings from the alternative tax on
net capital gain.
Click here to access the tax rate schedules to use for this problem.
Round your final answers to the nearest dollar.
When computing Lanzo's tax liability, what tax rate is used for:
• The $4,000 of unrecaptured § 1250 gain?
• The $2,300 of 0%/15%/20% gain?
Lanzo's tax liability is $
and the tax saving from the alternative tax computation
is $
expand button
Transcribed Image Text:Problem 14-65 (b) (LO. 5) For 2020, Lanzo has properly determined that his taxable income is $22,500, including $4,000 of unrecaptured § 1250 gain and $2,300 of 0%/15%/20% gain. Lanzo files married filing separately. Compute Lanzo's tax liability and tax savings from the alternative tax on net capital gain. Click here to access the tax rate schedules to use for this problem. Round your final answers to the nearest dollar. When computing Lanzo's tax liability, what tax rate is used for: • The $4,000 of unrecaptured § 1250 gain? • The $2,300 of 0%/15%/20% gain? Lanzo's tax liability is $ and the tax saving from the alternative tax computation is $
2020 Tax Rate Schedules
Single-Schedule X
Head of household-Schedule Z
If taxable
of the
If taxable
of the
income is:
But not
атоunt
income is:
But not
атоunt
Over-
over-
The tax is:
over-
Over-
over-
The tax is:
over-
$ 9,875
.........10%
2$
$
$ 14,100
.........10%
2$
9,875
40,125
$
987.50 + 12%
9,875
14,100
53,700
$
1,410.00 + 12%
14,100
40,125
85,525
4,617.50 + 22%
40,125
53,700
85,500
6,162.00 + 22%
53,700
85,525
163,300
14,605.50 + 24%
85,525
85,500
163,300
13,158.00 + 24%
85,500
163,300
207,350
33,271.50 + 32%
163,300
163,300
207,350
31,830.00 + 32%
163,300
207,350
518,400
47,367.50 + 35%
207,350
207,350
518,400
45,926.00 + 35%
207,350
518,400
156,235.00 + 37%
518,400
518,400
154,793.50 + 37%
518,400
Married filing jointly or Qualifying widow(er)-
Schedule Y-1
Married filing separately-Schedule Y-2
If taxable
of the
If taxable
of the
income is:
But not
атоunt
income is:
But not
атоunt
Over-
over-
The tax is:
over-
Over-
over-
The tax is:
over-
2$
$ 19,750
.........10%
$
$
$ 9,875
.......10%
$
19,750
80,250
$
1,975.00 + 12%
19,750
9,875
40,125
$
987.50 + 12%
9,875
80,250
171,050
9,235.00 + 22%
80,250
40,125
85,525
4,617.50 + 22%
40,125
171,050
326,600
29,211.00 + 24%
171,050
85,525
163,300
14,605.50 + 24%
85,525
326,600
414,700
66,543.00 + 32%
326,600
163,300
207,350
33,271.50 + 32%
163,300
414,700
622,050
94,735.00 + 35%
414,700
207,350
311,025
47,367.50 + 35%
207,350
622,050
167,307.50 + 37%
622,050
311,025
83,653.75 + 37%
311,025
.........
.........
expand button
Transcribed Image Text:2020 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable of the If taxable of the income is: But not атоunt income is: But not атоunt Over- over- The tax is: over- Over- over- The tax is: over- $ 9,875 .........10% 2$ $ $ 14,100 .........10% 2$ 9,875 40,125 $ 987.50 + 12% 9,875 14,100 53,700 $ 1,410.00 + 12% 14,100 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 + 22% 53,700 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 + 24% 85,500 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 163,300 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 207,350 518,400 156,235.00 + 37% 518,400 518,400 154,793.50 + 37% 518,400 Married filing jointly or Qualifying widow(er)- Schedule Y-1 Married filing separately-Schedule Y-2 If taxable of the If taxable of the income is: But not атоunt income is: But not атоunt Over- over- The tax is: over- Over- over- The tax is: over- 2$ $ 19,750 .........10% $ $ $ 9,875 .......10% $ 19,750 80,250 $ 1,975.00 + 12% 19,750 9,875 40,125 $ 987.50 + 12% 9,875 80,250 171,050 9,235.00 + 22% 80,250 40,125 85,525 4,617.50 + 22% 40,125 171,050 326,600 29,211.00 + 24% 171,050 85,525 163,300 14,605.50 + 24% 85,525 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 163,300 414,700 622,050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 207,350 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 + 37% 311,025 ......... .........
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education