Latesha, a single taxpayer, had the following income and deductions for the tax year 2015: a. Compute
Question:
a. Compute Latesha€™s taxable income and federal tax liability for 2015 (round to dollars).
b. Compute Latesha€™s marginal, average, and effective tax rates.
c. For tax planning purposes, which of the three rates in Part b is the most important?
Transcribed Image Text:
INCOME Salary $ 80,000 Business Income 25,000 Interest income from bonds 10,000 Tax-exempt bond interest TOTAL INCOME Business expenses 5.000 120,000 DEDUCTIONS $ 9,500 ltemized deductions 20,000 Personal exemption 4.000 TOTAL DEDUCTIONS 33,500
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
a b Marginal rate 25 From tax rate schedule Average r...View the full answer
Answered By
Shameen Tahir
The following are details of my Areas of Effectiveness. The following are details of my Areas of Effectiveness English Language Proficiency, Organization Behavior , consumer Behavior and Marketing, Communication, Applied Statistics, Research Methods , Cognitive & Affective Processes, Cognitive & Affective Processes, Data Analysis in Research, Human Resources Management ,Research Project,
Social Psychology, Personality Psychology, Introduction to Applied Areas of Psychology,
Behavioral Neurosdence , Historical and Contemporary Issues in Psychology, Measurement in Psychology, experimental Psychology,
Business Ethics Business Ethics An introduction to business studies Organization & Management Legal Environment of Business Information Systems in Organizations Operations Management Global Business Policies Industrial Organization Business Strategy Information Management and Technology Company Structure and Organizational Management Accounting & Auditing Financial Accounting Managerial Accounting Accounting for strategy implementation Financial accounting Introduction to bookkeeping and accounting Marketing Marketing Management Professional Development Strategies Business Communications Business planning Commerce & Technology Human resource management General Management Conflict management Leadership Organizational Leadership Supply Chain Management Law Corporate Strategy Creative Writing Analytical Reading & Writing Other Expertise Risk Management Entrepreneurship Management science Organizational behavior Project management Financial Analysis, Research & Companies Valuation And any kind of Excel Queries.
4.70+
16+ Reviews
34+ Question Solved
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Question Posted:
Students also viewed these Business Law questions
-
Brad and Angie had the following income and deductions during 2016: Salaries $110,000 Interest income $10,000 Itemized deductions $16,000 Taxes withheld during the year $15,000 Calculate Brad and...
-
Cindy had the following income and deductions listed on her 2020 individual income tax return. Business income $37,000 Interest income on personal investments $5,000 Less Business expenses $40,000...
-
You client, Rob, has the following income and deductions for the financial year ended 30 June 2018: salary, $32,000; bank interest received, $150; and allowable deductions for special work clothing,...
-
The partnership of King, Queen and Prince engaged you to audit its accounting records. Some accounts are on the accrual basis and others are on the cash basis. The partnership's books were closed at...
-
The following information was available for The Gibson Group Inc. (TGGI) for 2016: 1. Class A common shares, 10 votes per share, unlimited authorized, 7,530,000 issued and outstanding on January 1,...
-
(a) Construct a Lewis structure for hydrogen peroxide, H2O2, in which each atom achieves an octet of electrons. (b) Do you expect the O-O bond in H2O2 to be longer or shorter than the bond in O2?
-
4. In October, Renie Guimond discovered that her credit report at TransUnion Credit Information Co. incorrectly stated that she was married, used the name "Ruth Guimond," and had a credit card from...
-
The transactions completed by PS Music during June 2014 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations:...
-
The following are the cash flows of two projects: Year Project A Project B $ (370) $ (370) 200 270 200 270 AWNI 200 270 200 If the opportunity cost of capital is 10%, what is the profitability index...
-
Ben Hallmark, the owner of Hallmark Surveying Services, has been in business for two years. The unadjusted trial balance at December 31, regarding the month just ended, follows. The following...
-
Explain how a computer can assist a tax practitioner in tax planning activities and making complex tax calculations.
-
The governor of your state stated in a recent political speech that he has never supported any income tax increases as the tax rates have remained at the same level during his entire term of office....
-
Why is it important to consider arrival characteristics in a queuing system?
-
Consider the two circuit diagrams below. These two circuits are equivalent in function but are drawn to appear differently. In circuit diagram 1, nodes a through f are labelled. Redraw circuit...
-
Boat Ltd . has a major asset that has just been purchased and has been segregated into the following significant components made up of spare parts and major inspections. Component D consists of a...
-
Could you elaborate on the concept of cultural humility as a guiding principle for fostering respectful and reciprocal interactions across diverse cultural contexts, and how might the cultivation of...
-
What is the administration and planning of business operations used to produce goods and services as efficiently as possible?
-
What impression does the Chronicle give of the Mongols in Russia and how does that compare and contrast with the impression given by Marco Polo of the Mongols in China? How did the Russian writer...
-
Beach Ltd experienced the following events. For each, say whether or not it is an accounting transaction and why, or why not. 1. The CEO decided that the companys main factory would be reorganised...
-
Use multiplication or division of power series to find the first three nonzero terms in the Maclaurin series for each function. y = e x2 cos x
-
In 2016, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Ginger's gift tax liability for 2016 if she and Greg elect gift splitting and Greg gave...
-
Janet Mason filed a 2013 gift tax return to report the gift on June 3, 2013, of closely held stock in Mason Meat Co., Inc. The tax return, which your firm prepared, reflected a value of $1,500 per...
-
Consult the case Estate of Edward S. Redstone, 145 T.C. No. 11 (2015), a rather complicated case, and answer the following uncomplicated questions: a. When did the alleged gift occur, and when did...
-
solution, theres alr ans . ABC Company manufactures three main products, X, Y, and Z, from a joint process. Joint costs amounted to P450,000. Additional information for June production follows: X...
-
1. Greyson Company wants to earn a 6% return on sales after taxes. The company's effective income tax rate is 40%, and its contribution margin is 30%. If Greyson has fixed costs of P240,000, what is...
-
step by step solution pls. ABC Inc. produces customized vans in a food carts order shop: [in November 1, the following balances appear in the inventory records: Finished goods P1?9,000 Work in...
Study smarter with the SolutionInn App