Question

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. $ .

Answer #1

Compute the 2019 Federal income tax liability and the marginal
and effective tax rates in each of the following independent
cases.
Click here to access the 2019 tax rate schedule. If required,
round the tax liability the nearest dollar. When required, round
the average rates to four decimal places before converting to a
percentage (i.e. .67073 would be rounded to .6707 and entered as
67.07%).
a. Chandler is single and reports taxable income of $149,000.
Tax liability: $ -- Marginal...

Suppose the Lee family, which includes two adults and two
dependent children, ends up with a gross annual income of $83,000
for 2020. Assume that with two children under age
16 the Lee’s can claim a total child tax credit of $5,920. In 2020,
Rachel Lee had $2,000 of her income automatically deposited into a
401k defined contribution savings plan provided by her employer.
Using Google (or other search engine) to locate needed
2020 tax-rate information, answer the tax questions...

Five years ago, Kate purchased a dividend-paying stock for
$10,000. For all five years, the stock paid an annual dividend of 4
percent before tax and Kate’s marginal tax rate was 24 percent.
Every year Kate reinvested her after-tax dividends in the same
stock. For the first two years of her investment, the dividends
qualified for the 15 percent capital gains rate; however, for the
last three years the 15 percent dividend rate was repealed and
dividends were taxed at...

Exercise 3-20 (Algorithmic) (LO. 6)
Compute the 2018 Federal income tax liability and the marginal
and effective tax rates in each of the following independent
cases.
Click here to access the 2018 tax rate schedule. If required,
round the tax liability the nearest dollar. When required, round
the average rates to four decimal places before converting to a
percentage (i.e. .67073 would be rounded to .6707 and entered as
67.07%).
a. Chandler is single and reports taxable
income of $104,200....

Taxable Income and Tax Liability Calculations (LO. 6)
Total income
$118,000
Excludable income
2,000
Deductions for adjusted gross income
2,500
Deductions from adjusted gross income
8,000
(Hint: The standard deduction for married
filing jointly is $24,400.)
Do not round intermediate computations. Round the final
tax liability to the nearest cent. Refer to the tax rate schedule
to calculate the following.
Based on the above information, for a couple filing jointly,
their adjusted gross income (AGI) is $; taxable income is...

Use the Tax Computation Worksheet, Exhibit 18-4, to calculate
the tax liability for the following taxpayer earning $100,000 or
above. Round your answer to the nearest cent.
Click here for Exhibit 18-4
Name
Filing
Status
Taxable
Income
Tax
Liability
Cabral
Head of
household
$185,188
$

Steve and Sue are married with three dependent children. Their
2017 joint income tax return shows $389,000 of AGI and $60,000 of
itemized deductions made up of $30,000 of state income taxes and
$30,000 of charitable contributions. Calculate the following
amounts: In your computations, round any percentage up the nearest
whole percent. If required, round your answers to the nearest
dollar. a. Allowable itemized or standard deduction amount $ b.
Allowable exemptions deduction amount $ c. Taxable income $

Compute the 2017 tax
liability and the marginal and average tax rates for the following
taxpayers.
Click here to access
the 2017 tax rate schedule. If required, round the tax liability
the nearest dollar. When required, round the average rates to three
decimal places before converting to a percentage (i.e. .67073 would
be rounded to .671 and entered as 67.1%).
a.
Chandler, who files as a single taxpayer, has taxable income of
$118,600.
Tax liability:
$
Marginal rate:
%
Average...

Deductions from Adjusted Gross Income, Calculating Tax Liability
(LO. 3, 5)
Hongtao is single and has a gross income of $90,100. His
allowable deductions for adjusted gross income are $4,300, and his
itemized deductions are $13,400. The standard deduction for 2017 is
$6,350 and a personal exemption is $4,050.
Round all amounts to the nearest dollar. Refer Tax Rate
Schedules to answer the following questions.
a. Hangtao's taxable income is $ and his tax
liability is $________ for 2017.
b....

1. Lacy is a single taxpayer. In 2017, her
taxable income is $47,200. What is her tax liability in each of the
following alternative situations? Use Tax Rate Schedule for
reference. (Do not round intermediate calculations. Round
your answer to 2 decimal places.)
a. All of her income is salary from her
employer.
Tax liability: ____?____
2. In 2017, Carson is claimed as a dependent on
his parent's tax return. His parents' ordinary income marginal tax
rate is 28 percent....

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