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A New Family Calculates Income and Tax Liability Kate Beckett and her two children, Austin and...

A New Family Calculates Income and Tax Liability Kate Beckett and her two children, Austin and Alexandra, moved into the home of her new husband, Richard Castle, in New York City. Kate is a novelist, and her husband is a police detective. The family income consists of the following: $70,000 from Kate’s book royalties; $111,000 from Richard’s salary; $10,000 in life insurance proceeds from a deceased aunt; $110 in interest from savings; $4,420 in alimony from Kate’s ex-husband; $14,200 in child support from her ex-husband; $500 cash as a Christmas gift from Richard’s parents; and a $1,600 tuition-and-books scholarship Kate received to go to college part time last year. What is the total of their reportable gross income? Round your answer to the nearest dollar. $ After Richard put $5,600 into qualified retirement plan accounts last year, what is their adjusted gross income? Round your answer to the nearest dollar. $ How many exemptions can the family claim? Round your answer to the nearest whole number. Number of exemptions: How much is the total value of exemptions allowed for the household? Round your answer to the nearest dollar. $ How much is the allowable standard deduction for the household? Round your answer to the nearest dollar. $ Their itemized deductions are $13,100, so should they itemize or take the standard deduction? They should take . What is their taxable income for a joint return? Round your answer to the nearest dollar. $ What is their final federal income tax liability, and what is their marginal tax rate? (Hint: Use Table 4-2.) Round your answer for tax liability to the nearest cent and answer for marginal tax rate to the nearest whole number. Tax Liability $ Marginal tax rate % If Richard’s employer withheld $33,000 for income taxes, does the couple owe money to the government or do they get a refund? How much? Round your answer to the nearest cent. $ .

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