FINANCIAL PLANNING PROBLEMS 1. Computing Taxable Income. Thomas Franklin arrived at the following tax information Gross salary, $41.780 Interest earnings, $225 Dividend income, $80 One personal exemption, $2,650 Itemized deductions, $3,890 Adjustments to income, $1,150 What amount would Thomas report as taxable income? (Obj. ) 2. Determining Tax Deductions. If Lola Harper had the fol lowing itemized deductions, should she use Schedule A or the standard deduction? The standard deduction for her tax situation is $6,050. (Obj. 2) Donations to church and other charities, $1,980 Medical and dental expenses exceeding 7.5 percent of ad- justed gross income, $430 State income tax, $690 Job-related expenses exceeding 2 percent of adjusted gross income, $1,610 3. Calculating Average Tax Rate. What would be the average tax rate for a person who paid taxes of $4,864.14 on a tax able income of $39,870? (Obj. 2) 4. Determining a Refund or Taxes Owed. Based on the follow ing data, would Ann and Carl Wilton receive a refund or owe additional taxes? (Obj. 2) Adjusted gross income, $43,190 Itemized deductions, $11,420 Child care tax credit, $80 Federal income tax withheld, $6,784 Amount for personal exemptions, $7,950 Tax rate on taxable income, 15 percent LO10 faa chould FINANCIAL PLANNING PROBLEMS 1. Computing Taxable Income. Thomas Franklin arrived at the following tax information Gross salary, $41.780 Interest earnings, $225 Dividend income, $80 One personal exemption, $2,650 Itemized deductions, $3,890 Adjustments to income, $1,150 What amount would Thomas report as taxable income? (Obj. ) 2. Determining Tax Deductions. If Lola Harper had the fol lowing itemized deductions, should she use Schedule A or the standard deduction? The standard deduction for her tax situation is $6,050. (Obj. 2) Donations to church and other charities, $1,980 Medical and dental expenses exceeding 7.5 percent of ad- justed gross income, $430 State income tax, $690 Job-related expenses exceeding 2 percent of adjusted gross income, $1,610 3. Calculating Average Tax Rate. What would be the average tax rate for a person who paid taxes of $4,864.14 on a tax able income of $39,870? (Obj. 2) 4. Determining a Refund or Taxes Owed. Based on the follow ing data, would Ann and Carl Wilton receive a refund or owe additional taxes? (Obj. 2) Adjusted gross income, $43,190 Itemized deductions, $11,420 Child care tax credit, $80 Federal income tax withheld, $6,784 Amount for personal exemptions, $7,950 Tax rate on taxable income, 15 percent LO10 faa chould