PROBLEMS

1. Daniel Simmonsarrived at the following tax information:

Gross salary, $62,250 Interest earnings, $75

Dividend income, $140 Adjustments to income, $850

Standard deduction, $12,000

What amount would Daniel report as taxable income (LO 3.2)?

3.What would be the average tax rate for a person who paid taxes of $4706 on a taxable income of $40,780? (LO 3.2)

5.If $4,323 was withheld during the year and taxes owed were $4,122, would the person owe an additional amount or receive a refund? What is the amount? (LO 3.2)

9.Using the tax table in Exhibit 35, determine the amount of taxes for the following situations: (LO 3.3)

a. A head of household with taxable income of $89,525.

b. A single person with taxable income of $89,001.

c. A married person filing a separate return with taxable income of $89,365.

14.On December 30, you decide to make a $3,000 charitable donation. (LO 3.4)

a.If you are in the 24 percent tax bracket, how much will you save in taxes for the current year?

b. If you deposit that tax savings in a savings account for the next five years at 8 percent, what will be the future value of that account?