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In 2018, Aurora received a $32,100 bonus computed as a percentage of profits. In 2019, Aurora's employer determined that the 2018 profits had been incorrectly
In 2018, Aurora received a $32,100 bonus computed as a percentage of profits. In 2019, Aurora's employer determined that the 2018 profits had been incorrectly computed, and Aurora had to refund the $9,630 in 2019. Assume that Aurora was in the 35% tax bracket in 2018 but in the 12% bracket in 2019.
If required, round your final answers to the nearest dollar. a. In 2018, Aurora is required to include b. In 2019, she can claim a in income. deduction that will yield a reduction in taxes for 2019Step by Step Solution
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