Latesha, a single taxpayer, had the following income and deductions for the tax year 2019: : (Click the icon to view the income and deductions.) 9 (Click the icon to view the standard deduction amounts.) 3 (Click the icon to view the 2019 tax rate schedule for the Single filings Read the requirements. Requirement a. Compute Latesha's taxable income and federal tax liability for 2019 (round to dollars and ignore the qualified business income deduction for this problem). First calculate the gross income, then calculate taxable income and the federal tax liability. (Cald whole dollar. If an input field is not used in the table, leave the input field empty, do not select a amou i - x Data Table INCOME $ Salary Business Income Interest income from taxable bonds Tax-exempt bond interest TOTAL INCOME 100,000 25,000 10,000 5,000 Total income from whatever source derived Minus: Exclusions, as provided in the tax law 140,000 Gross income DEDUCTIONS Business expenses 9,500 20,000 Choose from any list or enter any number in the input fields and then click Check Answer Itemized deductions TOTAL DEDUCTIONS 29,500 Reference Jatus.) nt ent STANDARD DEDUCTION Filing Status Married individuals filing joint returns and surviving spouses $ 24,400 Heads of households $ 18,350 Unmarried individuals (other than surviving spouses and heads of households) $ 12,200 Married individuals filing separate returns $ 12.200 Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses $1,300** Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. * These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind. Personal and Dependency Exemptions Suspended: In conjunction with the increased standard deduction amount, the Tax Cuts and Jobs Act reduces the personal exemption amount to $0 for tax years from 2018 through 2025, effectively suspending the exemptions for these years. $1,650** i Reference If taxable income is: Not over $9,700 Over $9,700 but not over $39,475 Over $39,475 but not over $84,200 Over $84,200 but not over $160,725 Over $160,725 but not over $204,100 Over $204,100 but not over $510,300 Over $510,300 Single The tax is: . 10% of taxable income. ..... $970.00 + 12% of the excess over $9,700. ...... $4,543.00 + 22% of the excess over $39,475. ..... $14,382.50 + 24% of the excess over $84,200. .... $32,748.50 + 32% of the excess over $160,725. .... $46,628.50 + 35% of the excess over $204,100 ... $153,798.50 + 37% of the excess over $510,300 0 Requirements a. Compute Latesha's taxable income and federal tax liability for 2019 (round to dollars and ignore the qualified business income deduction for this problem). b. Compute Latesha's marginal, average, and effective tax rates. c. For tax planning purposes, which of the three rates in Part b is the most important
