05: Blueprint Problems - Financial Statements, Cash Flow, and Taxes ack to Assignment Attempts: Keep the Highest: /18 3. 4: Financial Statements, Cash Flow, and Taxes: Federal Income Taxes Individuals and firms pay out a significant portion of their income as taxes, so taxes are important in both personal and corporate decisions. Our tax system is progres Individual Individuals pay taxes on wages, on investment income, and on the profits of proprietorships and partnerships. Taxable income is defined as gross income less a set of de In 2018, the personal exemption is for taxpayers and their dependents is zero. A capital gain (loss) is the profit (loss) from the sale of a capital asset for more (less) th purchase price. In 2018, for most taxpayers a Select capital gain is taxed at a maximum rate of 15%, while Select capital gain is taxed as ordinary incom high-Income taxpayers the tax rate on long-term capital gains is 20%). Select Income consists of dividend and Interest income. Interest income (except interest and local government debt which is exempt from federal taxes) is taxed as Select , while dividends are taxed at the same rate as long-term Select interest payments are not tax deductible for individuals except for interest on Select within certain limits. Projected 2018 tax rate schedules are shown for sing Individuals and married couples filing jointly. Average Tax Rate at Top of Bracket 10.0% 2018 Individual Tax Rates Single Individuals You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 952.50 12.0 4,453.50 22.0 14,089.50 24.0 32,089.50 45,689.50 150,689.50 If Your Taxable Income Is Up to $9,525 $9,525 - $38,700 $38,700 - $82,500 $82,500 - $157,500 $157,500 - $200,000 $200,000 - $500,000 Over $500,000 11.5 Standard deduction for individuali $12,000 Mount Q Search n 03: Blueprint Problems - Financial Statements, Cash Flow, and Taxes $38,700 - $2,500 4,453.50 $82,500 - $157,500 14,089.50 $157,500 - $200,000 32,089.50 32.0 $200,000 - $500,000 45,689.50 Over $500,000 150,689.50 Standard deduction for individual: $12,000 A verage Tax Rate at Top of Bracket 0.0% If Your Taxable Income Is Up to $19,050 $19,050 - $77,400 $77,400 - $165,000 $165,000 - $315,000 $315,000 - $400,000 $400,000 - $600,000 Over $600,000 Married couples Filing Joint Returns You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 1,905.00 8,907.00 28,179.00 64,179.00 91,379.00 161,379.00 Standard deduction for married couples Filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $106,000. She doesn't itemire deductions, so she will take the standard deduction to calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $7,500. How much does Jenna owe to the IRS for taxes? Do not round Intermediate calculations. Round your answer to the nearest cent. Corporate Corporations earn most of their income from operations; however, they may also receive interest and dividend Income. Select Income is taxed as ordinary income, however, Select income is taxed more favorably, 50% of Select received is excluded from taxable income, while the remaining 50% is taxed at the ordinary tax rate. For businesses, Select payments are regarded as an expense so they are tax deductible; however, Sect payments are not tax deductible. Consequently, our tax system encourages Select financing over Select financing, Depreciation expense is tax deductible, so the larger the depreciation, the Select the taxable income, the Select the taxes, and the Select the firm's operating cash flow. Quantitative Problemi Andrews Corporation has income from operations of $220,000. In addition, it received interest income of $22,000 and received dividend income of You Pay This Amount on the Base of the Bracket If Your Taxable Income Is Up to $19,050 $19,050 - $77,400 $77,400 - $165,000 $165,000 - $315,000 $315,000 - $400,000 $400,000 - $600,000 Over $600,000 TUN, UM Idxes Plus This Percentage Average Tax on the Excess over the Rate at Base (Marginal Rate) Top of Bracket 10.0% 10.0% 11.5 50 1,905.00 8,907.00 28,179100 64,179.00 91,379.00 161,379.00 NNN 17.1 20.4 22.8 26.9 Standard deduction for married couples filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she eamed wages of $106,000. She doesn't itemize deductions, so she will take the standard deduction calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $7,500. How much does Jenna owe IRS for taxes? Do not round Intermediate calculations. Round your answer to the nearest cent. Corporate Corporations earn most of their income from operations; however, they may also receive interest and dividend income. Select income is taxed as ordinary income, howev Select income is taxed more favorably. 50% of Select received is excluded from taxable income, while the remaining 50% is taxed at the ordinary tax rate. For businesses, Select payments are regarded as an expense so they are tax deductible, however, Select payments are not tax deductible. Consequently, our tax system encourages Select financing over-select-financing. Depreciation expense is tax deductible, so the larger the depreciation, the select the taxable income, the select the taxes, and the Select the firm's operating cash flow Quantitative Problemi Andrews Corporation has income from operations of $220,000. In addition, it received interest income of $22,000 and received dividend income of $32,400 from another corporation. Finally, it paid 59,100 of interest income to its bondholders and paid $45,100 of dividends to its common stockholders. The firm's federal tax rate is 21%. What is the firm's federal income tax? Do not round intermediate calculations, Round your answer to the nearest dollar Save & Continue Continue without saving MacBook Pro 05: Blueprint Problems - Financial Statements, Cash Flow, and Taxes ack to Assignment Attempts: Keep the Highest: /18 3. 4: Financial Statements, Cash Flow, and Taxes: Federal Income Taxes Individuals and firms pay out a significant portion of their income as taxes, so taxes are important in both personal and corporate decisions. Our tax system is progres Individual Individuals pay taxes on wages, on investment income, and on the profits of proprietorships and partnerships. Taxable income is defined as gross income less a set of de In 2018, the personal exemption is for taxpayers and their dependents is zero. A capital gain (loss) is the profit (loss) from the sale of a capital asset for more (less) th purchase price. In 2018, for most taxpayers a Select capital gain is taxed at a maximum rate of 15%, while Select capital gain is taxed as ordinary incom high-Income taxpayers the tax rate on long-term capital gains is 20%). Select Income consists of dividend and Interest income. Interest income (except interest and local government debt which is exempt from federal taxes) is taxed as Select , while dividends are taxed at the same rate as long-term Select interest payments are not tax deductible for individuals except for interest on Select within certain limits. Projected 2018 tax rate schedules are shown for sing Individuals and married couples filing jointly. Average Tax Rate at Top of Bracket 10.0% 2018 Individual Tax Rates Single Individuals You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 952.50 12.0 4,453.50 22.0 14,089.50 24.0 32,089.50 45,689.50 150,689.50 If Your Taxable Income Is Up to $9,525 $9,525 - $38,700 $38,700 - $82,500 $82,500 - $157,500 $157,500 - $200,000 $200,000 - $500,000 Over $500,000 11.5 Standard deduction for individuali $12,000 Mount Q Search n 03: Blueprint Problems - Financial Statements, Cash Flow, and Taxes $38,700 - $2,500 4,453.50 $82,500 - $157,500 14,089.50 $157,500 - $200,000 32,089.50 32.0 $200,000 - $500,000 45,689.50 Over $500,000 150,689.50 Standard deduction for individual: $12,000 A verage Tax Rate at Top of Bracket 0.0% If Your Taxable Income Is Up to $19,050 $19,050 - $77,400 $77,400 - $165,000 $165,000 - $315,000 $315,000 - $400,000 $400,000 - $600,000 Over $600,000 Married couples Filing Joint Returns You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 1,905.00 8,907.00 28,179.00 64,179.00 91,379.00 161,379.00 Standard deduction for married couples Filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $106,000. She doesn't itemire deductions, so she will take the standard deduction to calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $7,500. How much does Jenna owe to the IRS for taxes? Do not round Intermediate calculations. Round your answer to the nearest cent. Corporate Corporations earn most of their income from operations; however, they may also receive interest and dividend Income. Select Income is taxed as ordinary income, however, Select income is taxed more favorably, 50% of Select received is excluded from taxable income, while the remaining 50% is taxed at the ordinary tax rate. For businesses, Select payments are regarded as an expense so they are tax deductible; however, Sect payments are not tax deductible. Consequently, our tax system encourages Select financing over Select financing, Depreciation expense is tax deductible, so the larger the depreciation, the Select the taxable income, the Select the taxes, and the Select the firm's operating cash flow. Quantitative Problemi Andrews Corporation has income from operations of $220,000. In addition, it received interest income of $22,000 and received dividend income of You Pay This Amount on the Base of the Bracket If Your Taxable Income Is Up to $19,050 $19,050 - $77,400 $77,400 - $165,000 $165,000 - $315,000 $315,000 - $400,000 $400,000 - $600,000 Over $600,000 TUN, UM Idxes Plus This Percentage Average Tax on the Excess over the Rate at Base (Marginal Rate) Top of Bracket 10.0% 10.0% 11.5 50 1,905.00 8,907.00 28,179100 64,179.00 91,379.00 161,379.00 NNN 17.1 20.4 22.8 26.9 Standard deduction for married couples filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she eamed wages of $106,000. She doesn't itemize deductions, so she will take the standard deduction calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $7,500. How much does Jenna owe IRS for taxes? Do not round Intermediate calculations. Round your answer to the nearest cent. Corporate Corporations earn most of their income from operations; however, they may also receive interest and dividend income. Select income is taxed as ordinary income, howev Select income is taxed more favorably. 50% of Select received is excluded from taxable income, while the remaining 50% is taxed at the ordinary tax rate. For businesses, Select payments are regarded as an expense so they are tax deductible, however, Select payments are not tax deductible. Consequently, our tax system encourages Select financing over-select-financing. Depreciation expense is tax deductible, so the larger the depreciation, the select the taxable income, the select the taxes, and the Select the firm's operating cash flow Quantitative Problemi Andrews Corporation has income from operations of $220,000. In addition, it received interest income of $22,000 and received dividend income of $32,400 from another corporation. Finally, it paid 59,100 of interest income to its bondholders and paid $45,100 of dividends to its common stockholders. The firm's federal tax rate is 21%. What is the firm's federal income tax? Do not round intermediate calculations, Round your answer to the nearest dollar Save & Continue Continue without saving MacBook Pro