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Name: Tax1 I. II. 11. Fanny's employer has a qualified pension plan. The employer makes all payments into the plan; employees do not contribute to
Name: Tax1 I. II. 11. Fanny's employer has a qualified pension plan. The employer makes all payments into the plan; employees do not contribute to the plan. During the current year, the employer pays $4,000 into the plan on behalf of Fanny. The plan also earns $3,000 during the year on the balance in Fanny's retirement account. Which of the following statements is true? a. Only statement I is correct. b. Only statement II is correct. c. Both statements are correct. d. Neither statement is correct. I. II. Fanny is not taxed on the $4,000 in the current year. Fanny is not taxed on the $3,000 in the current year. 12. Sally is an electrician employed by Bogie Company. Sam is a self-employed electrician. During the current year, Sally's salary is $85,000 and Sam's net self-employment income is $85,000. Which of the following statements about the Social Security and self-employment taxes paid is/are correct? Sam's self-employment tax is greater than the Social Security tax paid on Sally's income. Sam and Sally pay the same amount of tax. a. Only statement I is correct. b. Only statement II is correct c. Both statements are correct d. None of the statements are correct. I. II. III. IV. Class: 13. The mythical country of Januvia imposes a tax based on the number of titanium coins each taxpayer owns at the end of each year per the following schedule: Number of titanium coins 0-200 201 - 500 OSTE > 500 Date: a. Statements II and III are correct. Marvin, a resident of Januvia, owns 300 titanium coins at the end of the current year. Marvin's titanium coins tax is $2,800. Marvin's marginal tax rate is $6. Marvin's average tax rate is $9.33. Marvin's average tax rate is $6. b. Statements I, II, and IV are correct. c. Statements II and IV are correct. d. Statements I, II, and III are correct. e. Only statement II is correct. Tax $500+ $5 per titanium coin $1,000+ $6 per titanium coin $4,000+ $7 per titanium coin
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