It's mid-December and Marie is finalizing her divorce. Generally, she and her soon to be ex-spouse...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
It's mid-December and Marie is finalizing her divorce. Generally, she and her soon to be ex-spouse have been amicable, and Marie is looking forward to being single. The divorce attorneys will be ready to complete the proceedings before December 31, but Marie is concerned about tax implications. Marie has asked for your help in determining whether to wait until the beginning of next year in order to minimize taxes. The couple has two children and expect each will take custody of one child maintaining their own households. Marie's taxable income is $90,000 while he soon-to-be ex-spouse's taxable income is $40,000. Ignore any tax credits in your analysis. Required: 1. Complete the "The tax is:" column for each filing status table using a formula 2. Prepare a comparison for Marie using VLOOKUP formulas to the 2022 tax brackets. (HINT: Use the TRUE logical value) If taxable income is over: $ $ $ $ $ $ $ $ - S 10,275.00 S 41,775.00 S 89,075.00 $ If taxable income is over: $ $ $ $ $ Ś 170,050.00 $ 215,950.00 $ 539,900.00 $ -5 20,550.00 $ 83,550.00 $ 178,150.00 $ 340,100.00 $ 431,900.00 $ 647,850.00 $ Option 1 Filing Status: Taxable income: If taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Total Tax: Grand Total Tax: F Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) S $ Schedule X-Single But not over: 10,275.00 $ 41.775.00 89,075.00 170,050.00 215,950.00 539,900.00 But not over: 20,550.00 $ 83,550.00 178,150.00 340,100.00 431,900.00 647,850.00 Marie The tax is: 90,000 $ The tax is: Ex-Spouse 40,000 Plus: Plus: 10% 12% 22% 24% 32% 35% 37% 10% 12% 22% 24% 32% 35% 37% If taxable income is over: $ $ $ S $ $ $ If taxable income is over: $ $ $ S $ S $ 14,650.00 $ 55,900.00 $ 89,050.00 S 170,050.00 S 215,950.00 5 539,900.00 $ $ $ 10,275.00 $ 41,775.00 $ 89,075.00 S 170,050.00 $ 215,950.00 S 323,925.00 $ Option 2 Filing Status: Taxable income: if taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Total Tax: P Schedule Z-Head of Household But not over: 14,650.00 $ 55,900.00 89,050.00 170,050.00 215,950.00 539,900.00 Schedule Y-2-Married Filing Separately But not over: 10,275.00 S 41,775.00 89,075.00 170,050.00 215,950.00 323,925.00 The tax is: Marie & Ex-Spouse The tax is: Plus: Plus: 10% 12% 22% 24% 32% 35% 37% 10% 12% 22% 24% 32% 35% 37% It's mid-December and Marie is finalizing her divorce. Generally, she and her soon to be ex-spouse have been amicable, and Marie is looking forward to being single. The divorce attorneys will be ready to complete the proceedings before December 31, but Marie is concerned about tax implications. Marie has asked for your help in determining whether to wait until the beginning of next year in order to minimize taxes. The couple has two children and expect each will take custody of one child maintaining their own households. Marie's taxable income is $90,000 while he soon-to-be ex-spouse's taxable income is $40,000. Ignore any tax credits in your analysis. Required: 1. Complete the "The tax is:" column for each filing status table using a formula 2. Prepare a comparison for Marie using VLOOKUP formulas to the 2022 tax brackets. (HINT: Use the TRUE logical value) If taxable income is over: $ $ $ $ $ $ $ $ - S 10,275.00 S 41,775.00 S 89,075.00 $ If taxable income is over: $ $ $ $ $ Ś 170,050.00 $ 215,950.00 $ 539,900.00 $ -5 20,550.00 $ 83,550.00 $ 178,150.00 $ 340,100.00 $ 431,900.00 $ 647,850.00 $ Option 1 Filing Status: Taxable income: If taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Total Tax: Grand Total Tax: F Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) S $ Schedule X-Single But not over: 10,275.00 $ 41.775.00 89,075.00 170,050.00 215,950.00 539,900.00 But not over: 20,550.00 $ 83,550.00 178,150.00 340,100.00 431,900.00 647,850.00 Marie The tax is: 90,000 $ The tax is: Ex-Spouse 40,000 Plus: Plus: 10% 12% 22% 24% 32% 35% 37% 10% 12% 22% 24% 32% 35% 37% If taxable income is over: $ $ $ S $ $ $ If taxable income is over: $ $ $ S $ S $ 14,650.00 $ 55,900.00 $ 89,050.00 S 170,050.00 S 215,950.00 5 539,900.00 $ $ $ 10,275.00 $ 41,775.00 $ 89,075.00 S 170,050.00 $ 215,950.00 S 323,925.00 $ Option 2 Filing Status: Taxable income: if taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Total Tax: P Schedule Z-Head of Household But not over: 14,650.00 $ 55,900.00 89,050.00 170,050.00 215,950.00 539,900.00 Schedule Y-2-Married Filing Separately But not over: 10,275.00 S 41,775.00 89,075.00 170,050.00 215,950.00 323,925.00 The tax is: Marie & Ex-Spouse The tax is: Plus: Plus: 10% 12% 22% 24% 32% 35% 37% 10% 12% 22% 24% 32% 35% 37%
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Schedule X Single If taxable income is over But not over The tax is Plus 1027500 10 1027500 4177500 102750 12 4177500 8907500 480750 22 8907500 17005000 1521350 24 17005000 21595000 3464750 3... View the full answer
Related Book For
Personal Finance An Integrated Planning Approach
ISBN: 978-0136063032
8th edition
Authors: Ralph R Frasca
Posted Date:
Students also viewed these databases questions
-
A family friend has asked for your help in analyzing the operations of three companies operating in the same service sector industry. Supply the missing data in the following table: Company B Sales...
-
The company controller, Barry Melrose, has asked for your help in interpreting the authoritative accounting literature that addresses the recognition and measurement of impairment losses for...
-
The University of Tennessee has asked for your help with implementing an activity-based costing system for the admissions office. The following activities and cost drivers were identified by the...
-
Which of the following statements is correct regarding a work sheet and the adjustment process? Adjusting journal entries are prepared from the Adjusted Trial Balance columns. Adjusting journal...
-
Cunningham Paper Corporation produces wood pulp that is used in making paper. The following data pertain to the companys production of pulp during September: Compute the equivalent units of...
-
Where are the olfactory sensory neurons, and why is that site poorly suited for their job?
-
The accounts and June 30, 2007, balances of Cromwell Company are arranged in no particular order: Requirements 1. Prepare the company's classified balance sheet in account format at June 30, 2007. 2....
-
The class date Type was designed to implement the date in a program, but the member function set Date and the constructor do not check whether the date is valid before storing the date in the member...
-
Provide an example of your own creative and innovative thinking from a digital marketing perspective. Please explain fully.
-
Using the Internet, find two examples of advertisements for sports products that use indirect objectives and two examples of advertisements that use direct objectives.
-
What would be the journal entry for: A large record sale for the month was made and delivered, in addition to the items from above, for $150,000 by Norms records. 55% of the sale was paid...
-
Is capital structure important to managers of not-for-profit businesses? Explain your answer.
-
Is the CCC the appropriate hurdle rate for all projects that a business evaluates?
-
When water freezes to make a snowflake crystal, the entropy of the water A. Decreases. B. Increases. C. Does not change.
-
Can you produce a net impulse on an automobile by sitting inside and pushing on the dashboard? Defend your answer.
-
a. What do bond ratings measure? b. How do investors interpret bond ratings? c. Why are bond ratings important? d. What is credit enhancement?
-
Consider a hypothetical chemical reaction: A+B C+D - (In this equation A, B, C and D stand for some unknown chemical formulas.) Here is an energy diagram for the reaction: energy (kJ/mol) 400- 300...
-
MgO prevents premature evaporation of Al in a furnace by maintaining the aluminum as Al2O3. Another type of matrix modifier prevents loss of signal from the atom X that readily forms the molecular...
-
An engine fire destroys your car. Which coverage would reimburse you for the dam age? What is the maximum amount you could collect under your auto policy?
-
1. If Sue died today, how much would the Wrights need in the family maintenance fund? Explain the reasons behind your calculations. 2. Suppose the Wrights found that Sue and Tom each had a life...
-
Why do the ages 5912 and 7012 have special significance for qualified retirement plans?
-
A shaft running at \(500 \mathrm{rpm}\) carries a pulley \(1 \mathrm{~m}\) diameter and drives another pulley by means of ropes with a speed ratio of 2:1. The drive transmits \(200 \mathrm{~kW}\)....
-
A flat belt drive is required to transmit \(20 \mathrm{~kW}\) at \(300 \mathrm{rpm}\) of \(2 \mathrm{~m}\) diameter pulley. The angle of contact is \(170^{\circ}\) and coefficient of friction between...
-
If the difference between tight and slack side tensions for a leather belt does not exceed \(100 \mathrm{~N} / \mathrm{cm}\) of width for a belt \(5 \mathrm{~mm}\) thick, find the maximum stress in...
Study smarter with the SolutionInn App