Question
Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $147,800 in wages. Assume Ekiya has no dependents.
Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $147,800 in wages. Assume Ekiya has no dependents. Ekiya deducts the standard deduction instead of itemized deductions, and she is not eligible for the qualified business income deduction. (Use the tax rate schedules.)
a. What is the amount of Ekiya's after-tax compensation (ignore payroll taxes)?
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
b-1. Suppose Ekiya receives a competing job offer of $139,000 in wages and nontaxable (excluded) benefits worth $8,800. What is the amount of Ekiya's after-tax compensation for the competing offer?
b-2. Which job should she take if taxes are the only concern?
IndividualsSchedule X-Single
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $11,000 | 10% of taxable income |
$ 11,000 | $ 44,725 | $1,100 plus 12% of the excess over $11,000 |
$ 44,725 | $ 95,375 | $5,147 plus 22% of the excess over $44,725 |
$ 95,375 | $ 182,100 | $16,290 plus 24% of the excess over $95,375 |
$ 182,100 | $ 231,250 | $37,104 plus 32% of the excess over $182,100 |
$ 231,250 | $ 578,125 | $52,832 plus 35% of the excess over $231,250 |
$ 578,125 | $174,238.25 plus 37% of the excess over $578,125 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started