Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon, $7,000 a year for college

image text in transcribed
image text in transcribed
Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon, $7,000 a year for college expenses. Jonathon works as a pizza delivery person every fall and has a marginal tax rate of 15 percent. b. How much pretax income does it currently take Tawana to generate the $7,000 (after-taxes) given to Jonathon? (Round your answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Pretax income $ 22,500 Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon, $7,000 a year for college expenses. Jonathon works as a pizza delivery person every fall and has a marginal tax rate of 15 percent. -31 d. How much money would the strategy save? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) This strategy will save Tawana $ 2,876 pretax and will save the family $ 1,812 after tax 136 26 RBA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Of The Federal Bureau Of Investigation Annual Financial Statements Fiscal Year 2015

Authors: Office Of The Inspector G Eneral, U.S. Department Of Justice

1st Edition

1530341264, 978-1530341269

More Books

Students also viewed these Accounting questions

Question

1. Define the nature of interviews

Answered: 1 week ago

Question

2. Outline the different types of interviews

Answered: 1 week ago