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Please answer both questions Determine how much the following individual will save in taxes with the specified tax credits or deductions. Rosa is in the
Please answer both questions
Determine how much the following individual will save in taxes with the specified tax credits or deductions. Rosa is in the 25% tax bracket and itemizes her deductions. How much will her tax bill be reduced if she makes a $500 contribution to charity? Her tax bill will be reduced by $ . (Simplify your answer.) Suppose your after-tax annual income is $39,000. Your annual expenses are $12,000 for rent, $8000 for food and household expenses, $1300 for interest on credit cards, and $9700 for entertainment, travel, and other. Answer questions a through c. a. Do you have a surplus or a deficit? Explain. A. There is a deficit because the sum of the expenses is less than the income. B. There is a surplus because the sum of the expenses is greater than the income. C. There is a surplus because the sum of the expenses is less than the income. OD. There is a deficit because the sum of the expenses is greater than the income. b. Next year, you expect to get a 4% raise. You think you can keep your expenses unchanged, with one exception: You plan to spend $7200 on a car. Explain the effect of this purchase on your budget. A. The purchase puts you into debt. B. The purchase increases your surplus. C. The purchase reduces your surplus. c. As in part b, assume you get a 4% raise for next year, but instead decide to not purchase a car. If you can limit your expenses to a 1% increase (over the prior year), could you afford $8200 in tuition and fees without going into debt? No, you cannot afford the tuition and fees without going into debt. Yes, you can afford the tuition and fees without going into debtStep by Step Solution
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