QUESTION 3 Hermione and Han are married. Hermione has a 15-year-old daughter (Luna) from her previous marriage. Hermione works as an engineer for Ravenclaw Engineering and earns a salary of $215,000. Ron has his own real estate company. Hermione received $4,500 of interest from corporate bonds and $2,250 of interest from a municipal bond. Hermione acquired these bonds prior to her marriage to Ron. Ron's father passed away on April 14. He inherited cash of $150,000 and a stamp collection valued at $7,000. As beneficiary of his father's life insurance policy, Ron also received $350,000. The Solo's also reported the following financial information pertaining to their activities during the current year. H e received 5 so in child portyments from her former husband. They were divered in 2011 Rowes a $4250 cash prize at a Quiddichcam raffle to help fund Lancam How howed 12.000 Raven to purchaeace Raven charged her 2 percent (5640) the loan, which she paid off on December 31, but they would have charged her $160 interest calculated at the applicable federalnica erth 12 a share The couple en Dee shares of Slythering for person July 2These w . The stock pada dividendo 3.00 per share on December l service Her received Six cash and a mande cok valued at $395 forrowing 10 years of Ravenclaw. She donated the cash to the local foodbank-acharitable r ation Here is a 40 p r of Grinder Inc. a Sucha Scorporation. The company pred dinary business income for the year of 48.000 Imione acquired the Griffinder stock two years ago Recollected S45.000 in con f or home sales and r i ces during the year. During the year, le 9.500 rpplies 56.50 for $12,000 for office ment, and $3,100 formicell e On con gave him w of his home for a week-end worth $3.00) in exchange for services for the yew R o his business activities in the cash method of For meg er SI e Ravel this year, Hermione was inmed Dec 23 the l e d the check from the check where will De Greece Use the table below to show what you did and did not include in their Gross Income and your explanation. Feel free to add additional rows if necessary. Appendix D Tax Rates 2019 Tax Rate Schedules Individuals Schedule X-Single Schedule Z-Head of Household Ir table income is over: If table incones But not But not over: The tax is: The taxis $ $ 0 9,700 $ 9.700 $ 39,475 0 $ 13.850 5 13.850 $ 52,850 $ 39,475 $ 84,200 $ 52,850 $84.200 $ 84,200 $160,725 $ 84,200 $160,700 10% of taxable income 5970 plus 12% of the excess over $9,700 $4,543 plus 22% of the excess Over $39.475 $14,382.50 plus 24% of the excess over 584,200 $32,748.50 plus 32% of the excess over $160,725 $46,628.50 plus 35% of the excess over $204,100 $153,798.50 plus 37% of the excess over 5510.100 10% of taxable income $1,385 plus 12% of the excess Over $13.850 56,065 plus 22% of the excess over 552.850 $12,962 plus 24% of the excess over $84.200 $31.322 plus 32% of the excess over $160,700 $45,210 plus 35% of the excess over S204,100 $152,380 plus 37% of the excess over 5510,300 $160,725 $204,100 $160,700 $204,100 $204,100 $510,300 $204,100 5510,300 $510,300 $510,300 Schedule Y-2-Married Filing Separately Schedule 1.1- Married Filing Joints or Qualifying Widower) Ir table income is overs If taxable income is V But not er The tax is: But not over The taxi 5 $ 0 9,700 5 9.700 5 39.475 0 $ 19,400 $ 19.400 5 78.950 $ 39,475 $84.200 $ 78,950 $168.400 $ 84,200 $160,725 $168.400 $321,450 10% of taxable income $1,900 plus 125 of the excess over $19.400 39,086 plus 22% of the excess over 578,950 $28,765 plus 24% of the excess over $168.400 565,497 plus 32% of the excess over 5321.450 893.257 plus 35% of the excess over $408.200 $164,709.50 plus 37% of the excess over $612.350 10% of taxable income 5970 plus 125 of the CESS OVER 59,700 $4.543 plus 225 of the excess Over $19,475 $14.382.50 plus 245 of the excess OVER $84.200 $32,748.50 plus 32% of the excess over $160,725 $46,628.50 plus 35% of the excess over S204,100 $82,354.75 plus 37% of the excess over $306,175 $160.725 $204,100 $321,450 $408.200 $204,100 $306,175 5408,200 $612,350 $306,175 $612,350 D-2 Appendix D Estates and Trusts inable K i over: But not oner: The tani $ 0 $ 2.600 $2,600 $9,300 $ 9,300 $12.750 10% of taxable income $260 plus 24% of the excess over $2.600 $1.868 plus 35% of the excess over $9.300 $3,075.50 plus 37% of the excess over $12.750 $12.750 Tax Rates for Net Capital Gains and Qualified Dividends Rate Taxable income Single Trusts and Estates O Married Filing Jointly $0-$78,750 $78,751 - 5488,850 $488.851+ Married Filing Separately $0-$39.375 $39.376 - $244.425 $244.426+ Head of Household 50 - $52.750 $52,751 - $461,700 $461,701+ SO - $39,375 $39.376 - $434,550 $434.551+ 15% 20% 50 - 52.650 $2,651 - $12.950 $12.951+ *This rule applies to the nel capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified divi dends are included in taxable income last for this purpose). Basic Standard Deduction Amounts 2018 Anoul 2019 Lakin Amount of Each Additional Standard Deduction for Taxpayers Who Are Age 65 or Blind 2018 2019 Amunt Amount Film Nuus Married Filing Jointly Qualifying Widow or Widower Married Filing Separately Head of Household Single $24,000 $24,000 $12.000 $18.000 $12.000 $24.400 $24.400 $12.200 $18.350 $12.200 Married taxpayers Single taxpayer or head of household $1,300 S1600 $1,300 $1.650 Exemption Amount 2018 *For individuals claimed as a dependent on another return, the 2019 standard deduction is the greater of (1) 1,100 or (2) 5350 plus earned income not to exceed the standard deduction amount of those who are not dependents, 2019 $4.150 54.2009 "Used for qualifying relative gross income test Corporations Tusable Income Rate 21% QUESTION 3 Hermione and Han are married. Hermione has a 15-year-old daughter (Luna) from her previous marriage. Hermione works as an engineer for Ravenclaw Engineering and earns a salary of $215,000. Ron has his own real estate company. Hermione received $4,500 of interest from corporate bonds and $2,250 of interest from a municipal bond. Hermione acquired these bonds prior to her marriage to Ron. Ron's father passed away on April 14. He inherited cash of $150,000 and a stamp collection valued at $7,000. As beneficiary of his father's life insurance policy, Ron also received $350,000. The Solo's also reported the following financial information pertaining to their activities during the current year. H e received 5 so in child portyments from her former husband. They were divered in 2011 Rowes a $4250 cash prize at a Quiddichcam raffle to help fund Lancam How howed 12.000 Raven to purchaeace Raven charged her 2 percent (5640) the loan, which she paid off on December 31, but they would have charged her $160 interest calculated at the applicable federalnica erth 12 a share The couple en Dee shares of Slythering for person July 2These w . The stock pada dividendo 3.00 per share on December l service Her received Six cash and a mande cok valued at $395 forrowing 10 years of Ravenclaw. She donated the cash to the local foodbank-acharitable r ation Here is a 40 p r of Grinder Inc. a Sucha Scorporation. The company pred dinary business income for the year of 48.000 Imione acquired the Griffinder stock two years ago Recollected S45.000 in con f or home sales and r i ces during the year. During the year, le 9.500 rpplies 56.50 for $12,000 for office ment, and $3,100 formicell e On con gave him w of his home for a week-end worth $3.00) in exchange for services for the yew R o his business activities in the cash method of For meg er SI e Ravel this year, Hermione was inmed Dec 23 the l e d the check from the check where will De Greece Use the table below to show what you did and did not include in their Gross Income and your explanation. Feel free to add additional rows if necessary. Appendix D Tax Rates 2019 Tax Rate Schedules Individuals Schedule X-Single Schedule Z-Head of Household Ir table income is over: If table incones But not But not over: The tax is: The taxis $ $ 0 9,700 $ 9.700 $ 39,475 0 $ 13.850 5 13.850 $ 52,850 $ 39,475 $ 84,200 $ 52,850 $84.200 $ 84,200 $160,725 $ 84,200 $160,700 10% of taxable income 5970 plus 12% of the excess over $9,700 $4,543 plus 22% of the excess Over $39.475 $14,382.50 plus 24% of the excess over 584,200 $32,748.50 plus 32% of the excess over $160,725 $46,628.50 plus 35% of the excess over $204,100 $153,798.50 plus 37% of the excess over 5510.100 10% of taxable income $1,385 plus 12% of the excess Over $13.850 56,065 plus 22% of the excess over 552.850 $12,962 plus 24% of the excess over $84.200 $31.322 plus 32% of the excess over $160,700 $45,210 plus 35% of the excess over S204,100 $152,380 plus 37% of the excess over 5510,300 $160,725 $204,100 $160,700 $204,100 $204,100 $510,300 $204,100 5510,300 $510,300 $510,300 Schedule Y-2-Married Filing Separately Schedule 1.1- Married Filing Joints or Qualifying Widower) Ir table income is overs If taxable income is V But not er The tax is: But not over The taxi 5 $ 0 9,700 5 9.700 5 39.475 0 $ 19,400 $ 19.400 5 78.950 $ 39,475 $84.200 $ 78,950 $168.400 $ 84,200 $160,725 $168.400 $321,450 10% of taxable income $1,900 plus 125 of the excess over $19.400 39,086 plus 22% of the excess over 578,950 $28,765 plus 24% of the excess over $168.400 565,497 plus 32% of the excess over 5321.450 893.257 plus 35% of the excess over $408.200 $164,709.50 plus 37% of the excess over $612.350 10% of taxable income 5970 plus 125 of the CESS OVER 59,700 $4.543 plus 225 of the excess Over $19,475 $14.382.50 plus 245 of the excess OVER $84.200 $32,748.50 plus 32% of the excess over $160,725 $46,628.50 plus 35% of the excess over S204,100 $82,354.75 plus 37% of the excess over $306,175 $160.725 $204,100 $321,450 $408.200 $204,100 $306,175 5408,200 $612,350 $306,175 $612,350 D-2 Appendix D Estates and Trusts inable K i over: But not oner: The tani $ 0 $ 2.600 $2,600 $9,300 $ 9,300 $12.750 10% of taxable income $260 plus 24% of the excess over $2.600 $1.868 plus 35% of the excess over $9.300 $3,075.50 plus 37% of the excess over $12.750 $12.750 Tax Rates for Net Capital Gains and Qualified Dividends Rate Taxable income Single Trusts and Estates O Married Filing Jointly $0-$78,750 $78,751 - 5488,850 $488.851+ Married Filing Separately $0-$39.375 $39.376 - $244.425 $244.426+ Head of Household 50 - $52.750 $52,751 - $461,700 $461,701+ SO - $39,375 $39.376 - $434,550 $434.551+ 15% 20% 50 - 52.650 $2,651 - $12.950 $12.951+ *This rule applies to the nel capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified divi dends are included in taxable income last for this purpose). Basic Standard Deduction Amounts 2018 Anoul 2019 Lakin Amount of Each Additional Standard Deduction for Taxpayers Who Are Age 65 or Blind 2018 2019 Amunt Amount Film Nuus Married Filing Jointly Qualifying Widow or Widower Married Filing Separately Head of Household Single $24,000 $24,000 $12.000 $18.000 $12.000 $24.400 $24.400 $12.200 $18.350 $12.200 Married taxpayers Single taxpayer or head of household $1,300 S1600 $1,300 $1.650 Exemption Amount 2018 *For individuals claimed as a dependent on another return, the 2019 standard deduction is the greater of (1) 1,100 or (2) 5350 plus earned income not to exceed the standard deduction amount of those who are not dependents, 2019 $4.150 54.2009 "Used for qualifying relative gross income test Corporations Tusable Income Rate 21%