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1. Bob Paris is the promotions director for a local radio station. He is single and claims two exemptions. Last year Bob earned a salary
1. Bob Paris is the promotions director for a local radio station. He is single and claims two exemptions. Last year Bob earned a salary of $2,450 per month from the station and received a $3,500 bonus for Christmas. In addition, he earned royalties of $3,250 from a song he wrote, which was recorded and made popular by a famous musical group. Bob's itemized deductions amounted to $1,850, and he is entitled to a tax credit of $1,765. If the radio station withheld $325 per month for income tax, what is Bob's: a. Adjusted gross income? format should be $x.xxx. b. Taxable income? format should be $x.xxx. c. Tax liability? format should be $x.xxx. d. Is Bob entitled to a refund or does he owe additional taxes? If so, how much? choose refund or owe. $x,xxx
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