Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 7AP
7 a
To determine
Determine the decrease in revenue that government collects from Mr. and Mrs. BK.
7 b
To determine
Determine the decrease in revenue that the government collects if Mr. and Mrs. BK respond to the rate decrease by working harder and earnings by $375,000 taxable income.
7 c
To determine
Determine the decrease in revenue that the government collects if Mr. and Mrs. BK respond to the rate decrease by working harder and earnings by $275,000 taxable income.
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Students have asked these similar questions
7) Ms. Benoit is a self-employed architect who earns $300,000 annual taxable income. For the past several years, her tax rate on this income has been 35 percent. Because of recent tax law changes, Ms. Benoit’s tax rate for next year will decrease to 25 percent.
a) Based on a static forecast, how much less revenue will the government collect from Ms. Benoit next year?
b) How much less revenue will the government collect from Ms. Benoit next year if she responds to the rate decrease by working more hours and earning $375,000 taxable income?
c) How much less revenue will the government collect from Ms. Benoit next year if she responds to the rate decrease by working fewer hours and earning only $275,000 taxable income?
"Mr. and Mrs. Jerald own a dry cleaning business that generates $125,000 taxable income each year. For the past few years, the couple’s federal tax rate on this income has been 32 percent. Congress recently increased the tax rate for next year to 40 percent.
Based on a static forecast, how much additional revenue will the federal government collect from Mr. and Mrs. Jerald next year?
How much additional revenue will the government collect if Mr. and Mrs. Jerald respond to the rate increase by working harder and earning $140,000 next year?
How much additional revenue will the government collect if Mr. and Mrs. Jerald respond to the rate increase by working less and earning only $110,000 next year?
"
For the following taxpayers, indicate whether the taxpayer should file a tax
return and why.
a. Robert earned $50,000 this year as a staff accountant. His estimated tax
liability is $4,500, and he expects to receive a $500 tax refund.
b. Amy earned $4,000 this year working part-time. She will have no federal tax
liability and has not made any federal tax payments.
c. Ty earned $2,500 this summer and had $200 of federal taxes withheld from
his paycheck. He will have no federal tax liability this year.
d. Startup Corporation had a $50,000 loss this year.
e. The Walker Family Trust earned $500 of gross income this year.
Chapter 2 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 2 - What evidence suggests that the federal tax system...Ch. 2 - Prob. 3QPDCh. 2 - National governments have the authority to print...Ch. 2 - In each of the following cases, discuss how the...Ch. 2 - Prob. 6QPDCh. 2 - Ms. V resides in a jurisdiction with a 35 percent...Ch. 2 - What nonmonetary incentives affect the amount of...Ch. 2 - Prob. 9QPDCh. 2 - Prob. 10QPDCh. 2 - Discuss the tax policy implications of the saying...
Ch. 2 - Prob. 12QPDCh. 2 - Jurisdiction E spends approximately 7 million each...Ch. 2 - Prob. 14QPDCh. 2 - Prob. 15QPDCh. 2 - Corporation R and Corporation T conduct business...Ch. 2 - Ms. P is considering investing 20,000 in a new...Ch. 2 - Country M levies a 10 percent excise tax on the...Ch. 2 - The city of Lakeland levies a 2 percent tax on the...Ch. 2 - The city of Clement levies a 5 percent tax on the...Ch. 2 - Mrs. K, a single taxpayer, earns a 42,000 annual...Ch. 2 - Prob. 5APCh. 2 - Prob. 6APCh. 2 - Prob. 7APCh. 2 - Jurisdiction B levies a flat 7 percent tax on the...Ch. 2 - Jurisdiction X levies a flat 14 percent tax on...Ch. 2 - Prob. 10APCh. 2 - Prob. 11APCh. 2 - Country A levies an individual income tax with the...Ch. 2 - Prob. 13APCh. 2 - Prob. 14APCh. 2 - Prob. 1IRPCh. 2 - Identify the tax issue or issues suggested by the...Ch. 2 - Prob. 3IRPCh. 2 - Prob. 4IRPCh. 2 - Prob. 5IRPCh. 2 - Prob. 6IRPCh. 2 - Prob. 1TPC
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