Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in wages. Assume Ekiya has no dependents.

Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 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.)

What is the amount of Ekiya's after-tax compensation (ignore payroll taxes)?

image text in transcribed

2023 Tax Rate Schedules

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

\begin{tabular}{|l|r|} \hline \multicolumn{1}{|c|}{ Description } & \multicolumn{1}{c|}{ Amount } \\ \hline (1) Gross income & $125,000 \\ \hline (2) For AGI deductions & \\ \hline (3) Adjusted gross income & $125,000 \\ \hline (4) Standard deduction & 16,290 \\ \hline (5) Taxable income & $108,710 \\ \hline (6) Income tax liability & \\ \hline After-tax compensation & \\ \hline \end{tabular}

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

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions