LO 41 31.Emily, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in cash wages. Assume Emily has no dependents. Emily deducts the standard deduction instead of itemized deductions, she is not eligible for the qualified business income deduction, and she did not make any charitable donations. planning a) What is the amount of Emily's after-tax compensation (ignore payroll taxes)? b) Suppose Emily receives a competing job offer of $120.000 in cash compensation and nontaxable (excluded) benefits worth $5,000. What is the amount of Emily's after-tax compensation for the competing offer? Which job should she take if taxes are the only concern? LO 4-1 32. Through November, Cameron has received gross income of $120,000. For December, Cameron is considering whether to accept one more work engagement for the year. Engagement 1 will generate $7,000 of revenue at a cost to Cameron of $3,000, which is deductible for AGI. In contrast, engagement 2 will generate $5,000 of qualified business income (QBI), which is eligible for the 20 percent QBI deduction. Cameron files as a single taxpayer, and he did not contribute to charity during the year. planning a) Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions. b) Which engagement maximizes Cameron's after-tax cash flow? Explain. 2021 Tax Rate Schedules Individuals Schedule XSingle If taxable income is But not over: over: The tax is: $ 0 $ 9.950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9.950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40.525 $ 86,375 $164,925 $14,751 plus 24% of the excess over $86,375 $164.925 $209,425 $33,603 plus 32% of the excess over $164,925 $209,425 $523,600 547,843 plus 35% of the excess over $209,425 $523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule 7Head of Household If taxable income is But not over: over: The tax is: $ $ 14,200 10% of taxable income $ 14,200 $ 54,200 $1,420 plus 12% of the excess over $14,200 S 54,200 $ 86,350 $6,220 plus 22% of the excess over $54.200 $ 86,350 $164,900 $13,293 plus 24% of the excess over 586,350 $164,900 $209,400 $32,145 plus 32% of the excess over $164.900 $209,400 $523,600 $46,385 plus 35% of the excess over $209,400 $523,600 $156,355 plus 37% of the excess over S523,600 over: Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is But not over: over: The tax is: $0 $ 19,900 10% of taxable income $ 19,900 $ 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 $172,750 $9,328 plus 22% of the excess over $81,050 $172,750 $329,850 $29,502 plus 24% of the excess over $172,750 $329,850 $418,850 $67,206 plus 32% of the excess over $329,850 $418,850 $628,300 $95,686 plus 35% of the excess over $418,850 $628,300 $ $168.993.50 plus 37% of the excess over $628,300 Schedule Y-2Married Filing Separately If taxable income is But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9.950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40.525 $ 86,375 $164,925 $14,751 plus 24% of the excess over $86,375 $164.925 $209,425 $33,603 plus 32% of the excess over $164.925 $209,425 $314,150 $47,843 plus 35% of the excess over $209,425 $314,150 $84,496.75 plus 37% of the excess over $314.150 Estates and Trusts If taxable income is over: $ 0 $ 2,650 But not over: $ 2,650 $ 9,550 The tax is: : 10% of taxable income $265 plus 24% of the excess over $2,650 $1,921 plus 35% of the excess over 59,550 $3,146 plus 37% of the excess over $13,050 $ 9.550 $13.050 $13,050