Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please help me with these 2 problems for my Taxation class, I will rate thumbs up! Thank you so much! 6. Peter is

Can you please help me with these 2 problems for my Taxation class, I will rate thumbs up! Thank you so much!

6. Peter is single with no dependents. In 2016, the following occurred: Peter graduated from law school and got a job as an attorney; he earned $40,000 during the year. Peters mother gave him a gift of $10,000 for graduating law school and passing the bar exam. Peter had some savings in his local credit union which earned $75 of interest during the year. Now that Peter has graduated, he had to start paying back his student loans; Peter paid $600 in Qualified Student Loan interest. Peter has no itemized expenses and takes the standard deduction.

Based on the facts, answer the following questions:

a.) What is Peters Gross Income?

b.) What is Peters Total Income?

c.) What is Peters Adjusted Gross Income?

d.) What is Peters Taxable Income?

e. What is Peters Tax Liability?

f. What is Peters Effective Tax Rate?

g. What is Peters Average Tax Rate?

h. What is Peters Marginal Tax Rate?

7. Robin, who is single, had long-term capital gains totaling $2,000 in 2016. Robins marginal ordinary income tax rate is 25%. What is her preferential (capital gains) tax rate on her long-term capital gains?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions