Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please can you solve this problem. I sumbitted this problem this morning, no one has solved it for me! can you please solve it ASAP.

image text in transcribed
please can you solve this problem. I sumbitted this problem this morning, no one has solved it for me!
can you please solve it ASAP.
Accountancy 503 May 26, 2020 Graham, a single, calendar year individual, had a rather good year in 2019. He generated business income of $220,000 and had $79,000 of business deductions, including deductible meals of $4,250 (before the required 50% reduction). Conservative Graham had taxable interest income of $18,600 and no other taxable income. Graham's self-employment tax for 2019 is $20,222. Graham can deduct one-half of this in arriving at his adjusted gross income. Graham's deductions and related information are as follows: QBI deduction in arriving at AGI $26,603 Standard deduction 18,350 Itemized deductions 17,700 Dependents (Graham's mother, ager 75) Create an Excel spreadsheet to: Calculate Graham's taxable income and his gross federal income tax. Based on your answers, calculate Graham's: Average tax rate? Effective tax rate? Marginal tax rate? 1 Basic Tax Formula: Income as most broadly conceived Minus: Exclusions Equals: Gross income Minus: Deductions for AGI Equals: Adjusted gross income Minus: Larger of itemized deductions or standard deduction Minus: QBI deduction Equals: Taxable income Apply tax rates Equals gross income tax Minus: Credits and prepayments Equals: Tax due or refund

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Energy Audits

Authors: Albert Thumann, Terry Niehus, William J. Younger

8th Edition

1439821453, 978-1439821459

More Books

Students also viewed these Accounting questions