Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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 80,250 171,050 326,600 414,700 622,050

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hong Kong Auditing Economic Theory And Practice

Authors: Simon Fung, Ferdinard A. Gul

3rd Edition

9629372347, 978-9629372347

More Books

Students also viewed these Accounting questions