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Question list O Question 1 O Question 2 K Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $125,000 from salary and wages (ordinary income). 2. $3,000 in interest income. 3. $5,000 in dividend income. 4. $2,000 in profit from sale of a stock they purchased two years ago. 5. $4,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2,, to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income is taxed differently than ordinary income.) c. How much will Mike and Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? a. The amount Mike and Julie will pay in federal income taxes on 2, their interest income, is $. (Round to the nearest dollar.) b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $. (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $. (Round to the nearest dollar.) d. The amount Mike and Julie will pay in federal income taxes on 5, the profit on the sale of stock they purchased and sold this year, is $. (Round to the nearest dollar.)

Question list O Question 1 O Question 2 K Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $125,000 from salary and wages (ordinary income). 2. $3,000 in interest income. 3. $5,000 in dividend income. 4. $2,000 in profit from sale of a stock they purchased two years ago. 5. $4,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2,, to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income is taxed differently than ordinary income.) c. How much will Mike and Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? a. The amount Mike and Julie will pay in federal income taxes on 2, their interest income, is $. (Round to the nearest dollar.) b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $. (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $. (Round to the nearest dollar.) d. The amount Mike and Julie will pay in federal income taxes on 5, the profit on the sale of stock they purchased and sold this year, is $. (Round to the nearest dollar.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Question List** **Question 1** Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $125,000 from salary and wages (ordinary income). 2. $3,000 in interest income. 3. $5,000 in dividend income. 4. $2,000 in profit from the sale of a stock they purchased two years ago. 5. $4,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2 to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income is taxed differently than ordinary income.) c. How much will Mike and Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? --- a. The amount Mike and Julie will pay in federal income taxes on 2, their interest income, is $_____. (Round to the nearest dollar.) b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $_____. (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $_____. (Round to the nearest dollar.) d. The amount Mike and Julie will pay in federal income taxes on 5, the profit on the sale of stock they purchased and sold this year, is $_____. (Round to the nearest dollar.)
Transcribed Image Text:**Question List** **Question 1** Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $125,000 from salary and wages (ordinary income). 2. $3,000 in interest income. 3. $5,000 in dividend income. 4. $2,000 in profit from the sale of a stock they purchased two years ago. 5. $4,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2 to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income is taxed differently than ordinary income.) c. How much will Mike and Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? --- a. The amount Mike and Julie will pay in federal income taxes on 2, their interest income, is $_____. (Round to the nearest dollar.) b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $_____. (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $_____. (Round to the nearest dollar.) d. The amount Mike and Julie will pay in federal income taxes on 5, the profit on the sale of stock they purchased and sold this year, is $_____. (Round to the nearest dollar.)
# Tax Rates and Income Brackets for Joint Returns (2018) This table provides an overview of federal tax rates for different taxable income brackets for joint returns in 2018. The table is structured into two columns: Tax Rates and Taxable Income (Joint Returns). ### Tax Rates and Corresponding Brackets: - **10% Tax Rate**: Applicable to income from $0 to $19,750 - **12% Tax Rate**: Applicable to income from $19,751 to $80,250 - **22% Tax Rate**: Applicable to income from $80,251 to $171,050 - **24% Tax Rate**: Applicable to income from $171,051 to $326,600 - **32% Tax Rate**: Applicable to income from $326,601 to $414,700 - **35% Tax Rate**: Applicable to income from $414,701 to $622,050 - **37% Tax Rate**: Applicable to income over $622,050 This table can help taxpayers understand their potential federal tax obligations based on their joint income. (Note: There is an option to click an icon to copy the table contents into a spreadsheet for further analysis.)
Transcribed Image Text:# Tax Rates and Income Brackets for Joint Returns (2018) This table provides an overview of federal tax rates for different taxable income brackets for joint returns in 2018. The table is structured into two columns: Tax Rates and Taxable Income (Joint Returns). ### Tax Rates and Corresponding Brackets: - **10% Tax Rate**: Applicable to income from $0 to $19,750 - **12% Tax Rate**: Applicable to income from $19,751 to $80,250 - **22% Tax Rate**: Applicable to income from $80,251 to $171,050 - **24% Tax Rate**: Applicable to income from $171,051 to $326,600 - **32% Tax Rate**: Applicable to income from $326,601 to $414,700 - **35% Tax Rate**: Applicable to income from $414,701 to $622,050 - **37% Tax Rate**: Applicable to income over $622,050 This table can help taxpayers understand their potential federal tax obligations based on their joint income. (Note: There is an option to click an icon to copy the table contents into a spreadsheet for further analysis.)
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