Question
Refer Tax Rate Schedules to answer the following questions. For each of these dependents, calculate the income tax on their taxable income. In each case,
Refer Tax Rate Schedules to answer the following questions.
For each of these dependents, calculate the income tax on their taxable income. In each case, assume that their parents, who file jointly, have taxable income of $133,500.
If an amount is zero, enter "0". Round percent calculations to two decimal places. Round intermediate computations and final answer to the nearest dollar.
1. Loretta is 18. She earns $4,720 as a lifeguard during the summer. In addition, Loretta wins a rescue contest and receives a municipal bond worth $680. During the year, the bond pays $20 in interest.
2. Eva is 15. Her income consists of municipal bond interest of $780, stock dividends of $1,400, and interest credited to her savings account of $850.
3. Greg is 2. He has certificates of deposit given to him by his grandparents that pay $2,360 in interest.
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