Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 12, Problem 3CPA
Carol reports taxable income of $48,000. Included in that calculation are the following items.
Carol also had excluded municipal bond interest income of $8,000, $3,000 of which was deemed to be private activity bond interest. What are Carol’s total alternative minimum tax (AMT) adjustments?
- a. $1,200
- b. $2,000
- c. $3,000
- d. $6,750
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A resident citizen obtains P9,500 each from the following sources, net of final tax. Under which of the following passive income does the government obtain the least amount of final tax?
interest income from tax-free covenant bonds
share in net income of a taxable partnership
interest income from bank deposits
prizes
Carla Vista Corporation reports pretax financial income of $265,900 for 2025. The following items cause taxable income to be
different than pretax financial income:
1. Rental income on the income statement is less than rent collected on the tax return by $64,100.
Depreciation on the tax return is greater than depreciation on the income statement by $41.200.
Interest on an investment in a municipal bond of $8,000 on the income statement.
2.
3.
Carla Vista' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred
taxes at the beginning of 2025.
(a)
Your Answer Correct Answer (Used)
Compute taxable income and income taxes payable for 25.
Taxable income
Income taxes payable
280,800
84,240
Q
The income tax T owed in a certain state is a function of the taxable income I, both measured in dollars. The formula is given below.
T = 0.13I − 300
a) Express using functional notation the tax owed on a taxable income of $12,000.
T (_______)
Calculate the tax owed on a taxable income of $12,000.
$ (_______)
b) If your taxable income increases from $12,000 to $15,000, by how much does your tax increase?
$(_______)
(c) If your taxable income increases from $15,000 to $18,000, by how much does your tax increase?
$(_______)
Chapter 12 Solutions
Individual Income Taxes
Ch. 12 - Kelly was promoted and received a substantial...Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Can any nonrefundable credits, other than the...Ch. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 16DQCh. 12 - Prob. 17DQCh. 12 - During the year, Rachel earned 18,000 of interest...Ch. 12 - Compute the 2019 AMT exemption for the following...Ch. 12 - In March 2019, Serengeti exercised an ISO that had...Ch. 12 - Prob. 21CECh. 12 - Prob. 22CECh. 12 - Prob. 23CECh. 12 - Prob. 24CECh. 12 - Prob. 25CECh. 12 - Prob. 26PCh. 12 - Arthur Wesson, an unmarried individual who is age...Ch. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Lisa records nonrefundable Federal income tax...Ch. 12 - Prob. 31PCh. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - In March 2019, Helen Carlon acquired used...Ch. 12 - Prob. 35PCh. 12 - Prob. 36PCh. 12 - Prob. 37PCh. 12 - Prob. 38PCh. 12 - Christopher regularly invests in internet company...Ch. 12 - Sammy and Monica, both age 67, incur and pay...Ch. 12 - Prob. 41PCh. 12 - Prob. 42PCh. 12 - Prob. 43PCh. 12 - Prob. 44PCh. 12 - Anh is single, has no dependents, and itemizes...Ch. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Jane and Robert Brown are married and have eight...Ch. 12 - Prob. 49PCh. 12 - Renee and Sanjeev Patel, who are married, reported...Ch. 12 - Prob. 51PCh. 12 - Lynn, age 45, is single and has no dependents. Her...Ch. 12 - Prob. 53PCh. 12 - Robert A. Kliesh, age 41, is single and has no...Ch. 12 - Prob. 55CPCh. 12 - Prob. 1RPCh. 12 - Prob. 2RPCh. 12 - Prob. 3RPCh. 12 - Prob. 1CPACh. 12 - Prob. 2CPACh. 12 - Carol reports taxable income of 48,000. Included...Ch. 12 - Prob. 4CPA
Knowledge Booster
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
- Select the best answer to the tax credit and corporate and partnership income tax issues. Mamey, Inc. had taxable income of $138,500 in 2020. What is the income tax expense for the year 2020? a. $29,085 b. $25,623 c. $34,625 d. $27,700 Which of the following items might not generally appear on the Schedule M-1 reconciliation a. Exempt interest income b. Meal expenses c. Office material expenses d. Federal income tax expense Cubey Industries, Inc. has a net book income of $76,100. For the year it had an income tax expense of $18,900. During the year Cubey received pandemic exempt income of $5,000 and had total food expense of $1,000 on books. What is the result of the Schedule M-1 reconciliation per Schedule line 10. a. $81,600 b. $90,500 c. $95,500 d. $95,000 The net operating losses (NOLs) that a corporation has available to be used against taxable income for the year 2020 are subject to a. A limitation of 90% of taxable income b.…arrow_forwardFinal Income taxation is characterized by: Full taxes are withheld by the income payor at source. Recipient receives the income net of tax Payor is the one required by law to remit the tax to government Recipient need not file an income tax return Tax withheld constitutes full tax due and deemed final payments EXAMPLE: Anna is a depositor of East West and earns an interest income of P8,000 in a 6-month time deposit on year 2020. This interest income is subject to 20% final tax or P1,600. Requirements: Discuss final income tax using the names and amounts given. For example, In final income taxation, Anna receives the income of P6,400 net of tax.arrow_forwardCoronado reported the following pretax financial income (loss) for the years 2020–2022. 2020 $122,400 2021 (144,000) 2022 183,600 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020-2022. Prepare the journal entries for the years 2020–2022 to record income tax expense, income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Prepare the income tax section of the 2021 income statement beginning with the line “Income (loss) before income taxes.”. (Enter negative amounts using either a negative sign preceding the number e.g.…arrow_forward
- Memanarrow_forwardUse the following information to calculate the federal average tax rate (ignore tax credits) for a taxpayer who earned $115,000 from employment, and where bonds were sold for $20,000 during the year that originally cost $10,000: Taxable income Up to $47,630 On the next $47,629 On the next $52,408 On the next $62,704 Over $210,371 Select one: Tax Rate 15% 20.5% Based on the above, the average tax rate (ATR) is closest to: a. 19.15% b. 19,45% c. 20.5% d. 26.0% 26% 29% 33%arrow_forwardAccounting where is the deductible?arrow_forward
- The Wes Trust reports $112,800 of AMT income before the annual exemption. Round any computations and final answer to the nearest dollar. The entity's AMT for 2021 is $fill in the blank 1 22,828 (wrong answer) Feedback Area Feedback The alternative minimum tax (AMT) may apply to a trust or an estate in any tax year. Given the nature and magnitude of the tax preferences, adjustments, and exemptions that determine alternative minimum taxable income (AMTI), however, most trusts and estates are unlikely to incur the tax.arrow_forwardIn its first tax year, the Vasquez Estate generated $50,000 of taxable interest income and $30,000 of tax-exempt interest income. It paid fiduciary fees of $8,000. The estate is subject to a 40% marginal estate tax and a 37% marginal income tax rate. a. How much should the executor assign as a Form 706 deduction for the payment of the fees? b. Express this computation as a Microsoft Excel command.arrow_forwardWhen determining his alternative minimum tax, Edward had the following adjustments and preference items: Itemized deduction for state taxes $1,800 Refund of prior - year state income tax 300 Cash contributions 800 Capital gain 700 Depletion in excess of adjusted basis 700 What are the amounts of tax preference items and adjustments to taxable income for alternative minimum tax purposes on Edward's 2022 tax return? Preference Adjustments A. $ 700 $1,500 B. $ 700 $0 C. $1,400 $1,800 D. $2,200 $2,200 E. $1,500 $ 700arrow_forward
- In 2024, Dark Knight Inc. had taxable income of $125,000. Dark Knight had one permanent difference and one temporary difference. The permanent difference was $15,000 of non-taxable state and municipal bond income. The temporary difference was $30,000 of rent collected in 2024 and included in 2024 taxable income that was deferred until 2025 for book purposes. The tax rate is 20% for all years. After considering income tax expense, what was Dark Knight’s net income? Group of answer choices $106,000 $82,000 $91,000 $115,000arrow_forwardIn 2024, Dark Knight Inc. had taxable income of $125,000. Dark Knight had one permanent difference and one temporary difference. The permanent difference was $15,000 of non-taxable state and municipal bond income. The temporary difference was $30,000 of rent collected in 2024 and included in 2024 taxable income that was deferred until 2025 for book purposes. The tax rate is 20% for all years. After considering income tax expense, what was Dark Knight’s net income?arrow_forwardA taxpayer is itemizing their return and they're trying to calculate the deductible amount of state income taxes paid. They have $4,000 from their Form(s) W-2 and they paid an outstanding balance in the current year for the prior year's balance of $2,500. What is the total amount of Line 5 income taxes that they can itemize? (Do not consider SALT limitations for this question) 2500 4000 6500arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
Understanding U.S. Taxes; Author: Bechtel International Center/Stanford University;https://www.youtube.com/watch?v=QFrw0y08Oto;License: Standard Youtube License