Question
Leonardo earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo
Leonardo earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income.
If Leonardo and his wife file married filing jointly in 2015, what would be their average tax rate (rounded)?
| A. | 15.00% |
| B. | 25.00% |
| C. | 18.53% |
| D. | 23.73% |
| E. | None of these |
How much money would Leonardo and Theresa save if they file jointly instead of separately for year 2015?
| A. | Nothing |
| B. | $132.00 |
| C. | $309.75 |
| D. | $5,922.00 |
| E. | None of these |
What is Leonardo and Theresa's effective tax rate for year 2015 (rounded)?
| A. | 15.00% |
| B. | 18.53% |
| C. | 21.15% |
| D. | 28.00% |
| E. | None of these |
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
