Question

ACC312 Federal Taxation Application problems Ms. BK is a self-employed architect who earns $300,000 annual taxable...

ACC312 Federal Taxation

Application problems

Ms. BK 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. BK'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. BK next year?

b. How much less revenue will the government collect from Ms. BK 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. BK next year if she responds to the rate decrease by working fewer hours and earning only $275,000 taxable income?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ACC312 Federal Taxation Application problems 1.) Country M levies a 10 percest excise tax on the...
ACC312 Federal Taxation Application problems 1.) Country M levies a 10 percest excise tax on the retail price of any automobile purchased in the country. This year, the aggregate purchase price subject to tax was $8 million, so current year revenue was $800,000. Country M plans to increase the tax rate next year to 11 percent. Compute next year's excise tax revenue assuming: a. Next year's tax base equals the current year base b. Next year's tax base increases to...
6) Heather, a single taxpayer who files as a head of household, earns $60,000 in taxable...
6) Heather, a single taxpayer who files as a head of household, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Oxford bonds. Using the U.S. tax rate schedule for year 2019, how much federal tax will she owe? What is her average tax rate? What is her effective tax rate? What is her current marginal tax rate? If Heather has an additional $20,000 of tax deductions, what is her marginal tax rate on...
Heather, a single taxpayer who files as a head of household, earns $60,900 in taxable income...
Heather, a single taxpayer who files as a head of household, earns $60,900 in taxable income and $9,500 in interest from an investment in city of Oxford Bonds. Using the U.S. tax rate schedule for year 2019, how much federal tax will she owe? What is her average tax rate? What is her effective tax rate? What is her current marginal tax rate? If Heather has an additional $29,000 of tax deductions, what is her marginal tax rate on these...
Ira’s only source of income is from working. He can work as many hours per day...
Ira’s only source of income is from working. He can work as many hours per day as he wishes (up to a maximum of 24 hours) at a fixed wage rate of $10 / hour. a. Initially, assume that there is no income tax.   Draw Ira’s budget constraint. b. Now suppose, that the government introduces a tax rate of 50 cents in the dollar. Suppose that leisure is a normal good that tax ends up reducing Ira’s hours worked. Show...
Case Study When taxes induce people to change their behavior—such as inducing Jane to buy less...
Case Study When taxes induce people to change their behavior—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from...
Assignment 2-Case Study-Chapters: 7, 8, 9 & 12 (Macroeconomics) ECON201 Case Study When taxes induce people...
Assignment 2-Case Study-Chapters: 7, 8, 9 & 12 (Macroeconomics) ECON201 Case Study When taxes induce people to change their behavior—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency...
Case Study When taxes induce people to change their behavior—such as inducing Jane to buy less...
Case Study When taxes induce people to change their behavior—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from...
1. The U.S. income tax was enacted by the _____ amendment to the Constitution. a.16th b.18th...
1. The U.S. income tax was enacted by the _____ amendment to the Constitution. a.16th b.18th c.2nd d.13th 2. Tax law is a tool used by government to: a.Raise revenue to run government b.Support research and development c.Further economic goals d.Encourage social objectives e.All of these choices are correct. 3. Entities required to report income to the IRS are: a.Partnerships b.Estates c.Trusts d.Corporations e.All of these choices are correct. 4. What is reported on Schedule A of Form 1040? a.Itemized...
1. All of the following programs are considered mandatory spending EXCEPT: interest on national debt. Medicare....
1. All of the following programs are considered mandatory spending EXCEPT: interest on national debt. Medicare. Social Security. national defense. 2. What did Arthur Laffer suggest President Reagan do in the 1980s? increase welfare benefits increase corporate taxes increase income taxes decrease income taxes 3. A type of money made from a substance that is also valuable is called: economic money. fiat money. commodity money. metallic money. 4. What are the two common measures of the money supply in use...
  The following balance sheet and income statement should be used for questions #1 through #6: Kuipers,...
  The following balance sheet and income statement should be used for questions #1 through #6: Kuipers, Inc. 2001 Income Statement (OMR in millions) Net sales 9,625 Less: Cost of goods sold 5,225 Less: Depreciation 1,890 Earnings before interest and taxes 2,510 Less: Interest paid 850 Taxable income 1,660 Less: Taxes 581 Net income 1,079 Addition to retained earnings 679 Dividends paid 400 Kuipers, Inc. 12/31/00 and 12/31/01 Balance Sheet (in OMR, in millions) 2000 2001 2000 2001 Cash 1,455 260...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT