All questions must be answered in excel
4. Answer the following questions for the following four scenarios, based on the information below: a. What is the tax owed? b. How much did this taxpayer save in taxes due to the lower rate on capital gains? Show how this savings is computed, reconciling the amount saved using the appropriate tax rates c. Why is there a lower rate for long-term capital gains and qualified dividends? Answer with words only. d. How much did the taxpayers save in taxes by making the charitable contribution? e. How much did the Affordable Care Act (Obamacare) cost each taxpayer(s) in additional taxes? Status Minor children Wage Income Interest income on corporate bonds Inetrest income on tax free municipal bonds Qualified dividend income Non-Qualified dividend income Procceeds from selling stock that was purchased 3 years ago Cost of that stock 3 years ago IRA Contribution (payment) Medical expenses paid Home mortgage interest paid State income taxes paid Local property taxes paid Charitable contributions paid Unreimbursed job expenses Federal income taxes withheld Scenario W Single 0 165,000 2.000 750 0 0 40,000 13,000 0 3,900 0 9,700 0 780 1,400 35,000 Scenario X HH 0 250,000 10,000 3,500 4,000 1,400 65,000 40.000 4,000 3,900 6,000 8,500 7,000 2300 1,000 62.000 Scenario y MF) 0 500,000 3,000 2,500 8,000 1,400 190.000 65,000 5,000 3,900 12,500 29.900 12.000 2,500 1,850 148.000 Scenario Z MEJ 0 1,000,000 5,000 0 100,000 0 255.000 180,000 0 3,900 15,800 95.000 19.000 200 O 348,000 Ronne. A MEL una herraminad Income afetand mine helmets ECTO hintal 4. Answer the following questions for the following four scenarios, based on the information below: a. What is the tax owed? b. How much did this taxpayer save in taxes due to the lower rate on capital gains? Show how this savings is computed, reconciling the amount saved using the appropriate tax rates c. Why is there a lower rate for long-term capital gains and qualified dividends? Answer with words only. d. How much did the taxpayers save in taxes by making the charitable contribution? e. How much did the Affordable Care Act (Obamacare) cost each taxpayer(s) in additional taxes? Status Minor children Wage Income Interest income on corporate bonds Inetrest income on tax free municipal bonds Qualified dividend income Non-Qualified dividend income Procceeds from selling stock that was purchased 3 years ago Cost of that stock 3 years ago IRA Contribution (payment) Medical expenses paid Home mortgage interest paid State income taxes paid Local property taxes paid Charitable contributions paid Unreimbursed job expenses Federal income taxes withheld Scenario W Single 0 165,000 2.000 750 0 0 40,000 13,000 0 3,900 0 9,700 0 780 1,400 35,000 Scenario X HH 0 250,000 10,000 3,500 4,000 1,400 65,000 40.000 4,000 3,900 6,000 8,500 7,000 2300 1,000 62.000 Scenario y MF) 0 500,000 3,000 2,500 8,000 1,400 190.000 65,000 5,000 3,900 12,500 29.900 12.000 2,500 1,850 148.000 Scenario Z MEJ 0 1,000,000 5,000 0 100,000 0 255.000 180,000 0 3,900 15,800 95.000 19.000 200 O 348,000 Ronne. A MEL una herraminad Income afetand mine helmets ECTO hintal
