Problem 18-10 Calculating Net Pay and Spendable Income [LO18-6]Assume your gross pay per pay period is $6,700.00, and you are in the 33 percent taxbracket. Calculate your Taxable pay and spendable income if you save $670.00 perpay period in a tax-sheltered annuity.Note: Do not round intermediate calculations. Round your answers to the nearestwhole dollar.Answer is complete but not entirely correct.Taxable Pay and Spendable IncomeTaxable pay$4,040Spendable income$3,819x

Here's the corrected calculation of taxable pay and spendable income for the given…

Answered: Problem 18-10 Calculating Net Pay and…

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 14.20EX

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Question 12 You save $1500 each year into a tax-deferred retirement account. If you are in a 25% tax bracket and itemize deductions on your tax return, how much will you save on your taxes each year? Your Answer: Answer
LO.2 Oak Corporation has the following general business credit carryovers. If the general business credit generated by activities during 2019 equals 36,000 and the total credit allowed during the current year is 60,000 (based on tax liability), what amounts of the current general business credit and carryovers are utilized against the 2019 income tax liability? What is the amount of unused credit carried forward to 2020?
Question 2 Suppose you have a credit card with a 14% interest rate with monthly compounding, a home equity loan with a 7% interest rate with monthly compounding, and a bank savings account paying a 5% interest rate with annual compounding (all interest rates are quoted as Annual Percentage Rates). Your income tax rate is 40%. Only the interest on the savings account is taxable, and only the interest on the home equity loan is tax-deductible. What is the effective after-tax interest rate of each instrument, expressed as an annual rate? Suppose you are considering purchasing a new car and are offered a car loan with a 4.8% interest rate (Annual Percentage Rate) and monthly compounding (which is not tax-deductible). Should you take the car loan?
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15. Tax Deferred Retirement Benefits. If a person with a 24 percent tax bracket makes a deposit of $5,500 to a tax-deferred retirement account, what amount would be saved on cuIrent taxes? Type here to search ho 17 to to 144 f4 40 ?. 7. 8. %23 4. 7. 60 00 LO 96 %24 2.
Question 8 2.75 points Save Answer Jason's gross pay for the week is $1900. His year-to-date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 5% and that Jason's year-to-date pay has not yet exceeded the $7000 cap. What is the total amount of payroll taxes that his employer must record as payroll tax expenses? (Do not round your intermediate calculations. Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) O $117.80 O $240.35 O $259.35 O $107.35
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Question 11 The 2021 standard deduction is $12,600 and deductions for state and local taxes are limited to $10,000. You are already choosing to itemize your deductions becaue of charitible contributions. You expect to pay $8,000 of state income taxes in 2021 and you are looking at the tax benefits associated with purchasing a single family home as your primary residence. You estimate that the mortgage interest in 2021 will be $21,000 and the property taxes will be $2,000. What is the tax benefit associated with homeownership if your marginal tax rate is 22%? red
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What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $4,800? a. $20.28 b. $292.96 c. $312.00 d. $156.00 e. $738.46
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