Exercise 3-24 (Algorithmic) (LO. 6)

Compute the 2017 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases.

Click here to access the 2017 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to three decimal places before converting to a percentage (i.e. .67073 would be rounded to .671 and entered as 67.1%).

a. Chandler is single and reports taxable income of $134,000.

Tax liability:	$
Marginal rate:		%
Average rate:		%

b. Lamar, a head of household, records taxable income of $112,200.

Tax liability:

$

Marginal rate:

%

Average rate:

Problem 3-46 (Algorithmic) (LO. 5, 6, 9)

David and Ruby are engaged and plan to get married. During 2017, David is a full-time student and earns $6,700 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Ruby is employed and reports $71,400 in wages. The personal exemption amount for 2017 is $4,050.

Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, enter, "0". Do not round your intermediate computations. Round your final answer to nearest whole dollar. a. Compute the following:

	David Filing Single		Ruby Filing Single
Gross income and AGI	$		$
Standard deduction
Personal exemption
Taxable income	$		$
Income tax	$		$

b. Assume that David and Ruby get married in 2017 and file a joint return. What is their taxable income and income tax? Round your final answer to nearest whole dollar.

	Married Filing Jointly
Gross income	$
Standard deduction
Personal exemptions
Taxable income	$
Income tax	$

c. How much Federal income tax can David and Ruby save if they get married in 2017 and file a joint return? $

%