Question
1. The Tax Formula for Individuals (LO 1.3) Jason and Mary are married taxpayers in 2017. They are both under age 65 and in good
1. The Tax Formula for Individuals (LO 1.3)
Jason and Mary are married taxpayers in 2017. They are both under age 65 and in good health. For 2017 they have a total of $70,300 in wages and $435 in interest income. Jason and Mary's deductions for adjusted gross income amount to $5,175 and their itemized deductions equal $6,490. They claim two exemptions for the year on their joint tax return.
Table for the standard deduction
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a. What is the amount of Jason and Mary's adjusted gross income?
b. In order to minimize taxable income, Jason and Mary will_______________in the amount of $
C. What is their taxable income?
Problem 1-4 2. The Tax Formula for Individuals, A Brief Overview of Capital Gains and Losses (LO 1.3, L.O. 1.8)
In 2017, Lou has a salary of $53,300 from her job. She also has interest income of $1,600 and dividend income of $400. Lou is single and has no dependents. During the year, Lou sold silver coins held as an investment for a $7,000 loss.
Table for the standard deduction
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Calculate the following amounts for Lou:
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3.
he Tax Formula for Individuals, Filing Status and Tax Computation (LO 1.3, 1.5, 1.6, 1.7)
Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to $47,230 and they had interest income of $3,500. Diego and Dolores' deductions for adjusted gross income amounted to $2,000; their itemized deductions were $11,800; they claimed two exemptions on their return; and, they filed a joint return.
Table for the standard deduction
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Click here to access the tax tables.
a. What is the amount of their adjusted gross income? b. In order to minimize taxable income, Diego and Dolores will_________ in the amount of $
C. What is the amount of their taxable income?
d. What is their tax liability for 2017?
4.
Problem 1-6 (Algorithmic) The Tax Formula for Individuals, Filing Status and Tax Computation (LO 1.3, 1.5, 1.6, 1.7)
Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to $66,900 and they had interest income of $1,780. Diego and Dolores' deductions for adjusted gross income amounted to $2,330; their itemized deductions were $10,300; they claimed two exemptions on their return; and, they filed a joint return.
Table for the standard deduction
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Click here to access the tax tables.
a. What is the amount of their adjusted gross income?
b. In order to minimize taxable income, Diego and Dolores will_______________ in the amount of
c. What is the amount of their taxable income?
d. What is their tax liability for 2017?
5.
Problem 1-27 Special Rules for High-Income Taxpayers (LO 1.9)
Rachel is single and has wages of $150,000 and dividend income of $90,000. She has no investment expenses. Calculate the amount of the 3.8 percent net investment income tax she must pay.
6.
Problem 1-27 (Algorithmic) Special Rules for High-Income Taxpayers (LO 1.9)
Rachel is single and has wages of $164,750 and dividend income of $98,850. She has no investment expenses.
Calculate the amount of the 3.8 percent net investment income tax she must pay. Round your answer to the nearest whole dollar. $
7.
Problem 1-8 The Tax Formula for Individuals, Filing Status and Tax Computation, Personal and Dependency Exemptions (LO 1.3, 1.5, 1.6, 1.7)
Alicia (age 27) is a single, full-time college student. She earns $13,200 from a part-time job and has taxable interest income of $1,450. Her itemized deductions are $845.
Table for the standard deduction
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Calculate Alicia's taxable income for 2017. $
8.
Problem 1-11 The Tax Formula for Individuals, Filing Status and Tax Computation, Personal and Dependency Exemptions, The Standard Deduction (LO 1.3, 1.5, 1.6, 1.7)
Frank, age 35, and Joyce, age 34, are married and file a joint income tax return for 2017. Their salaries for the year total $84,600 and they have taxable interest income of $3,900. They have no deductions for adjusted gross income. Their itemized deductions are $12,800. Frank and Joyce do not have any dependents.
Table for the standard deduction
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a. What is the amount of their adjusted gross income? $
b. What is their deduction for personal exemptions? $
c. What is the amount of their taxable income? $
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Accounting
Authors: John Hoggett, Lew Edwards, John Medlin
6th Edition
0470806583, 978-0470806586
