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Rick, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in cash wages. Assume Rick files single
Rick, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in cash wages. Assume Rick files single and is entitled to one personal exemption. Rick deducts the standard deduction instead of itemized deductions.
a. What is the amount of Ricks after-tax compensation (ignore payroll taxes)? (Do not round intermediate calculations. Round income tax liability and After-tax compensation to 2 decimal places. Enter deductions as negative amounts)
| (1) | Gross income | $125,000 | |
| (2) | For AGI deductions | ||
| (3) | Adjusted gross income | $125,000 | |
| (4) | Standard deduction | ||
| (5) | Personal and dependency exemptions | ||
| (6) | Taxable income | $114,600 | |
| (7) | Income tax liability | ||
| After-tax compensation | |||
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