Question
Table 9-3 below shows information about an individuals income tax. Suppose the marginal tax rate is as follows: For any dollar of taxable income below
Table 9-3 below shows information about an individuals income tax. Suppose the marginal tax rate is as follows: For any dollar of taxable income below $19,050, there is a tax of 10 on each dollar of taxable income. For the next $58,350 of taxable income, there is a tax of 12 on each dollar of taxable income. For the next $87,600, there is a tax of 22 on each dollar of taxable income.
1. Refer to Table 9-3. What number should be in the place of A, where A is the adjusted gross income of the individual? In your answer, do not enter a dollar sign.
2. Refer to Table 9-3. What number should be in the place of B, where B is the taxable income of the individual? In your answer, do not enter a dollar sign.
3. Refer to Table 9-3. What number should be in the place of C, where C is the taxes owed by the individual? In your answer, do not enter a dollar sign.
4. Refer to Table 9-3. What number should be in the place of D, where D is the total tax payment of the individual after accounting for credits, but not including withholdings? In your answer, do not enter a dollar sign.
5. Refer to Table 9-3. What number should be in the place of E, where E is the final tax payment of the individual after including credits and withholdings? In your answer, do not enter a dollar sign.
Gross income $100,000 Deductions $5,000 Adjusted gross income (AGI) $A Standard (or itemized) deduction $24,000 Taxable income $B Taxes owed $C Credits $5,000 Total tax payment $D Withholding $1,500 Final payment (refund) due $E Gross income $100,000 Deductions $5,000 Adjusted gross income (AGI) $A Standard (or itemized) deduction $24,000 Taxable income $B Taxes owed $C Credits $5,000 Total tax payment $D Withholding $1,500 Final payment (refund) due $EStep by Step Solution
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