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Perry Bell paid $6,438 of state and local property and income tax this year. Assume the taxable year is 2022. Required: a. Compute the after-tax
Perry Bell paid $6,438 of state and local property and income tax this year. Assume the taxable year is 2022. Required: a. Compute the after-tax cost of these payments assuming Perry doesn't itemize deductions on his Form 1040. b. Compute the after-tax cost of these payments assuming Perry itemizes deductions, has a 24 percent marginal tax rate on regular taxable income, and didn't pay AMT. c. Compute the after-tax cost of these payments assuming Perry itemizes deductions, has a 32 percent marginal tax rate on regular taxable income, and paid $2,875 AMT. Perry Bell paid $6,438 of state and local property and income tax this year. Assume the taxable year is 2022. Required: a. Compute the after-tax cost of these payments assuming Perry doesn't itemize deductions on his Form 1040. b. Compute the after-tax cost of these payments assuming Perry itemizes deductions, has a 24 percent marginal tax rate on regular taxable income, and didn't pay AMT. c. Compute the after-tax cost of these payments assuming Perry itemizes deductions, has a 32 percent marginal tax rate on regular taxable income, and paid $2,875 AMT
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