In 2000, Ms Ennis, a head of household, contributed $63,000 in exchange for 630 shares of Seta stock Seta is a qualified small business This year, Ms Ennis sold all 630 shares for $148,050 Her only other investment income was an $11,025 long term capital gain from the sale of land Her taxable income before consideration of her two capital transactions is $756,000 Assume the taxable year is 2020 Use Individual tax rate schedules and tax rates for capital gains and qualified dividends Required Compute Ms Enniss income tax and Medicare contribution tax for the year How would the computation change if Ms Ennis acquired the Seta stock in 2011 instead of 2000 How would the computation change if Ms Ennis acquired the Seta stock in 2015 instead of 2000 a Amount Taxable Income Total Income Tax Medicare Contribution Tax b Taxable Income Total Income Tax Medicare Contribution Tax c Taxable Income Total Income Tax Medicare Contribution Tax Wy work 4 Production bne accounting jones 24e 2020 individual tax rate schedules jpg Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is Not over $19 750 Over $19,750 but not over $80,250 Over $80,250 but not over $171,050 Over $171,050 but not over $326,600 Over $326,600 but not over $414 700 Over $414,700 but not over $622 050 Over $622,050 The tax is 10 of taxable income $1 975 12 of excess over $19,750 $9,235 22 of excess over $80,250 $29,211 24 of excess over $171,050 $66 543 32 of excess over $326,600 $94,735 35 of excess over $414,700 $167,307 50 37 of excess over $622,050 The tax is 10 of taxable income $987 50 12 of excess over $9 875 $4,617,50 22 of excess over $40,125 $14 605 50 24 of excess over $85,525 $33,271 50 32 of excess over $ 163,300 $47 367 50 35 of excess over $207,350 $83,653 75 37 of excess over $311,025 Married Filing Separately If taxable income is Not over $9,875 Over $9,875 but not over $40 125 Over $40,125 but not over $85,525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $311,025 Over $311,025 Heads of Household If taxable income is Not over $14,100 Over $14,100 but not over $53,700 Over $53,700 but not over $85,500 Over $85 500 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 Single If taxable income is Not over $9,875 Over $9,875 but not over $40,125 Over $40,125 but not over $85 525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 The tax is 10 of taxable income $1 410 12 of excess over $14,100 $6,162 22 of excess over $53,700 $13,158 24 of excess over $85,500 $31,830 32 of excess over $163,300 $45,926 35 of excess over $207,350 $154,793 50 37 of excess over $518,400 The tax is 10 of taxable income $987 50 12 of excess over $9 875 $4,617 50 22 of excess over $40,125 $14 605 50 24 of excess over $85,525 $33,271 50 32 of excess over $163,300 $47 367 50 35 of excess over $207,350 $156,235 37 of excess over 518,400 52 Tax rates for capital gains and qualified dividends Rate Married Filing Married Filing Single Head of Jointly Separately Household 0 $0 $80,000 $0 $40,000 $0 $40,000 $0 $53,600 $80,001 $40,001 $40,001 $53,601 $496,600 $248,300 $441,450 $469,050 20 $496,601 $248,301 $441,451 $469,051 The highest income amount in this range for each filing status is referred to as maximum zero rate amo The highest income amount in this range for each filing status is referred to as maximum 15 percent ar 15 I CH Wy work 4 Production bne accounting jones 24e 2020 individual tax rate schedules jpg Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is Not over $19 750 Over $19,750 but not over $80,250 Over $80,250 but not over $171,050 Over $171,050 but not over $326,600 Over $326,600 but not over $414 700 Over $414,700 but not over $622 050 Over $622,050 The tax is 10 of taxable income $1 975 12 of excess over $19,750 $9,235 22 of excess over $80,250 $29,211 24 of excess over $171,050 $66 543 32 of excess over $326,600 $94,735 35 of excess over $414,700 $167,307 50 37 of excess over $622,050 The tax is 10 of taxable income $987 50 12 of excess over $9 875 $4,617,50 22 of excess over $40,125 $14 605 50 24 of excess over $85,525 $33,271 50 32 of excess over $ 163,300 $47 367 50 35 of excess over $207,350 $83,653 75 37 of excess over $311,025 Married Filing Separately If taxable income is Not over $9,875 Over $9,875 but not over $40 125 Over $40,125 but not over $85,525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $311,025 Over $311,025 Heads of Household If taxable income is Not over $14,100 Over $14,100 but not over $53,700 Over $53,700 but not over $85,500 Over $85 500 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 Single If taxable income is Not over $9,875 Over $9,875 but not over $40,125 Over $40,125 but not over $85 525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 The tax is 10 of taxable income $1 410 12 of excess over $14,100 $6,162 22 of excess over $53,700 $13,158 24 of excess over $85,500 $31,830 32 of excess over $163,300 $45,926 35 of excess over $207,350 $154,793 50 37 of excess over $518,400 The tax is 10 of taxable income $987 50 12 of excess over $9 875 $4,617 50 22 of excess over $40,125 $14 605 50 24 of excess over $85,525 $33,271 50 32 of excess over $163,300 $47 367 50 35 of excess over $207,350 $156,235 37 of excess over 518,400 52 Tax rates for capital gains and qualified dividends Rate Married Filing Married Filing Single Head of Jointly Separately Household 0 $0 $80,000 $0 $40,000 $0 $40,000 $0 $53,600 $80,001 $40,001 $40,001 $53,601 $496,600 $248,300 $441,450 $469,050 20 $496,601 $248,301 $441,451 $469,051 The highest income amount in this range for each filing status is referred to as maximum zero rate amo The highest income amount in this range for each filing status is referred to as maximum 15 percent ar 15 I CH

Question

In 2000, Ms  Ennis, a head of household, contributed $63,000 in exchange for 630 shares of Seta stock  Seta is a qualified small business  This year, Ms  Ennis sold all 630 shares for $148,050  Her only other investment income was an $11,025 long term capital gain from the sale of land  Her taxable income before consideration of her two capital transactions is $756,000  Assume the taxable year is 2020  Use Individual tax rate schedules and tax rates for capital gains and qualified dividends  Required  Compute Ms  Enniss income tax and Medicare contribution tax for the year  How would the computation change if Ms  Ennis acquired the Seta stock in 2011 instead of 2000  How would the computation change if Ms  Ennis acquired the Seta stock in 2015 instead of 2000  a  Amount Taxable Income Total Income Tax Medicare Contribution Tax b  Taxable Income Total Income Tax Medicare Contribution Tax c  Taxable Income Total Income Tax Medicare Contribution Tax Wy work 4 Production bne accounting jones 24e 2020 individual tax rate schedules jpg Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is  Not over $19 750 Over $19,750 but not over $80,250 Over $80,250 but not over $171,050 Over $171,050 but not over $326,600 Over $326,600 but not over $414 700 Over $414,700 but not over $622 050 Over $622,050 The tax is  10  of taxable income $1 975   12  of excess over $19,750 $9,235   22  of excess over $80,250 $29,211   24  of excess over $171,050 $66 543   32  of excess over $326,600 $94,735   35  of excess over $414,700 $167,307 50   37  of excess over $622,050 The tax is  10  of taxable income $987 50   12  of excess over $9 875 $4,617,50   22  of excess over $40,125 $14 605 50   24  of excess over $85,525 $33,271 50   32  of excess over $ 163,300 $47 367 50   35  of excess over $207,350 $83,653 75   37  of excess over $311,025 Married Filing Separately If taxable income is  Not over $9,875 Over $9,875 but not over $40 125 Over $40,125 but not over $85,525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $311,025 Over $311,025 Heads of Household If taxable income is  Not over $14,100 Over $14,100 but not over $53,700 Over $53,700 but not over $85,500 Over $85 500 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 Single If taxable income is  Not over $9,875 Over $9,875 but not over $40,125 Over $40,125 but not over $85 525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 The tax is  10  of taxable income $1 410   12  of excess over $14,100 $6,162   22  of excess over $53,700 $13,158   24  of excess over $85,500 $31,830   32  of excess over $163,300 $45,926   35  of excess over $207,350 $154,793 50   37  of excess over $518,400 The tax is  10  of taxable income $987 50   12  of excess over $9 875 $4,617 50   22  of excess over $40,125 $14 605 50   24  of excess over $85,525 $33,271 50   32  of excess over $163,300 $47 367 50   35  of excess over $207,350 $156,235   37  of excess over 518,400 52 Tax rates for capital gains and qualified dividends  Rate Married Filing Married Filing Single Head of Jointly Separately Household 0   $0 $80,000 $0 $40,000 $0   $40,000 $0 $53,600 $80,001   $40,001   $40,001   $53,601   $496,600 $248,300 $441,450 $469,050 20  $496,601  $248,301  $441,451  $469,051    The highest income amount in this range for each filing status is referred to as maximum zero rate amo    The highest income amount in this range for each filing status is referred to as maximum 15 percent ar 15    I CH Wy work 4 Production bne accounting jones 24e 2020 individual tax rate schedules jpg Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is  Not over $19 750 Over $19,750 but not over $80,250 Over $80,250 but not over $171,050 Over $171,050 but not over $326,600 Over $326,600 but not over $414 700 Over $414,700 but not over $622 050 Over $622,050 The tax is  10  of taxable income $1 975   12  of excess over $19,750 $9,235   22  of excess over $80,250 $29,211   24  of excess over $171,050 $66 543   32  of excess over $326,600 $94,735   35  of excess over $414,700 $167,307 50   37  of excess over $622,050 The tax is  10  of taxable income $987 50   12  of excess over $9 875 $4,617,50   22  of excess over $40,125 $14 605 50   24  of excess over $85,525 $33,271 50   32  of excess over $ 163,300 $47 367 50   35  of excess over $207,350 $83,653 75   37  of excess over $311,025 Married Filing Separately If taxable income is  Not over $9,875 Over $9,875 but not over $40 125 Over $40,125 but not over $85,525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $311,025 Over $311,025 Heads of Household If taxable income is  Not over $14,100 Over $14,100 but not over $53,700 Over $53,700 but not over $85,500 Over $85 500 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 Single If taxable income is  Not over $9,875 Over $9,875 but not over $40,125 Over $40,125 but not over $85 525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 The tax is  10  of taxable income $1 410   12  of excess over $14,100 $6,162   22  of excess over $53,700 $13,158   24  of excess over $85,500 $31,830   32  of excess over $163,300 $45,926   35  of excess over $207,350 $154,793 50   37  of excess over $518,400 The tax is  10  of taxable income $987 50   12  of excess over $9 875 $4,617 50   22  of excess over $40,125 $14 605 50   24  of excess over $85,525 $33,271 50   32  of excess over $163,300 $47 367 50   35  of excess over $207,350 $156,235   37  of excess over 518,400 52 Tax rates for capital gains and qualified dividends  Rate Married Filing Married Filing Single Head of Jointly Separately Household 0   $0 $80,000 $0 $40,000 $0   $40,000 $0 $53,600 $80,001   $40,001   $40,001   $53,601   $496,600 $248,300 $441,450 $469,050 20  $496,601  $248,301  $441,451  $469,051    The highest income amount in this range for each filing status is referred to as maximum zero rate amo    The highest income amount in this range for each filing status is referred to as maximum 15 percent ar 15    I CH

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In 2000, Ms. Ennis, a head of household, contributed $63,000 in exchange for 630 shares of Seta stock. Seta is a qualified small business. This

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