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Answer C and D please Calculating Tax Liability (LO. 5) Refer to the Tax Rate Schedules to answer the following questions. For each of these
Answer C and D please
Calculating Tax Liability (LO. 5) Refer to the Tax Rate Schedules to answer the following questions. For each of these dependents, calculate the income tax on their taxable income. The parents' marginal tax rate is 24% and the dependents' is 10% in each part. If an amount is zero, enter "0". Round percent calculations to two decimal places. Round intermediate computations and final answer to the nearest dollar. a. Louis is 12 and receives $1,290 in interest income. 19 b. 0 Jackson is 16. He earns $2,100 from his newspaper route and receives $730 in dividends on GCM stock. C. 230 Loretta is 18 and a full time student. She earns $5,780 as a lifeguard during the summer. In addition, Loretta wins a rescue contest and receives a municipal bond worth $580. During the year, the bond pays $20 in interest. d. 1,220 X Eva is 15. Her income consists of municipal bond interest of $800, qualified dividend income of $1,400, and interest credited to her savings account of $920. e. 0 Elaine is a college student. Her only income consists of $2,950 from her part-time job delivering pizzas. Her itemized deductions total $210. f. Greg is 2. He has certificates of deposit given to him by his grandparents that pay $2,480 in interest. 177 2020 INDIVIDUAL TAX RATE SCHEDULES Table B-1 Single Taxpayers If Taxable Income Is Over $ 0 9,875 40,125 85,525 163,300 207,350 518,400 But Not Over 9,875 40,125 85,525 163,300 207,350 518,400 The Tax Is 10% $ 987.50 + 12% 4,617.50 + 22% 14,605.50 +24% 33,271.50 + 32% 47,367.50 + 35% 156,235.00 + 37% of the Amount Over $ 0 9,875 40,125 85,525 163,300 207,350 518,400 Table B-2 Married Taxpayers Filing Jointly and Surviving Spouse If Taxable income Is Over $ 0 19,750 80,250 171,050 326,600 414,700 622,050 But Not Over 19,750 80,250 171,050 326,600 414,700 622,050 The Tax Is 10% $ 1,975.00 + 12% 9,235.00 + 22% 29,211.00 + 24% 66,543.00 + 32% 94,735.00 + 35% 167,307.50 + 37% of the Amount Over $ 0 19,750 80,250 171,050 326,600 414,700 622,050Step by Step Solution
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