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1. Given the general form of an income tax is: Tax=[(Income - Exclusions - Personal Exemptions - Deductions) x Tax Rate] - Credits, and assuming
1. Given the general form of an income tax is: Tax=[(Income - Exclusions - Personal Exemptions - Deductions) x Tax Rate] - Credits, and assuming a household with two adults and one child given the information in the table below, calculate: a. Adjusted Gross Income b. Taxable Income c. Tax Payment d. Effective Tax Rate
Income | 80,000 |
Exclusions | $500 of tax-exempt bond interest |
Personal Exemption | $106 for adults, $300 for dependents |
Deductions | $3,609 per household |
Tax Rate | 8% |
Credit | $360 for childcare expenses |
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